Reading... Technology

When I first heard of the Kindle, I was frankly appalled that the act of reading could become just another cash cow in the market of technology. I still have my doubts, but I must admit that the possibilities for reading technology are astounding and undeniable. There is no perfect device for reading, or anything really. However, the traditional book--though nostalgic-- is becoming increasingly outdated in our digital age. My opinion is that though books will probably not become totally obsolete in our time, the time has come for a reliable, flexible, useful digital publishing service/device that provides reading material in a way that combines the best aspects of both traditional novels and digital connectivity.
A book-like device that allows a reader to physically make their own notes by way of stylus (as they might in a paper text), a way to upload and save notes onto their computer, change the size of the page itself (such as the iPhone/iTouch), and (what seems to me to be the obvious and most important feature) a vast number of downloadable titles. A system like iTunes would be useful--where all the purchased texts are saved to a hard drive and can be switched out to save memory as well as a way to sort the texts by rating, genre, author, etc. I also think that owning a book and having the license to read are two very different things; any text that has been purchased should be considered the owner's property, without any unwanted interference from publishers after the book has been bought (such as removing texts, etc.). A digital library where texts can be "checked out" for certain periods of time would also be a lovely feature.
It's impossible for me to forgive any kind of reading technology for its shortcomings--hard plastic instead of paper, no musty used-book smell. But the oppurtunities presented by constantly-evolving reading technology are too great to be ignored, many and varied, endless even.