iPhone should make the Sony Reader obsolete

I view my feeds on google reader about 50% of the time from my Blackberry. Unlike several others, I prefer to read online than a physical paper. I also try and catch up my reading on the plane (physical books most times). So I have been eyeing the Sony Reader for a long time. But it struck me when I was reading the iPod touch now running mail, etc. on engadget.

With coverflow technology why can’t I “read” any book on my iPhone, instead of listening to it on my iPhone?

I think the Sony Reader is doomed. If Apple can do a licensing deal with the book companies, I would prefer to use my iPhone as a book reader than buy a new Sony Reader.

As part of the 3rd party developer announcement, I would think this would be one of the first application extensions (support of ebook reading).

What do you think?