I agree - for magazine reading the eInk greyscale just isn't all that great.
I just bought a nook Color this week w/ the $50 off coupon on EBAY but it is still charging so I haven't tried it out yet. I think that deal is over though. But it or a cheaper Android tablet with Apps for the various stores would probably be your best bet.
If you want music/games/internet and all that then the iPAD would be good, just much more expensive.