My son received an iPod Touch for Christmas and has been busy the last few days doing the normal things that a 12 year old does with such a device, mainly playing games, browsing web sites, and communicating with family and friends via things such as Skype, SMS and email. I also helped him download a few reading applications such as the Kindle Reader, and Stanza.
We have also installed Instapaper, an application at allows you to reposition web content for easy reading on devices such as the iPhone/iPod Touch. Basically you just install the Instapaper bookmarklet on your browser and then when you find content that you want to read on your device, you just save it with the bookmarklet and it is then synced to your Instapaper account and accessible through your iPhone/iPod Touch. We have started our mornings with me finding articles of interest and him sitting next to me reading off the iPod Touch.