I was shocked when I heard about the new Pandigital color e-reader today. Is this an e-reader, or is it more of a tablet computing device? After reading all of the specs, I would have to say that this is closer to a sort of “poor man’s iPad”. It has a lot of great features for a price that is really impressive, as low as $159 online.

There are two types of people that would be in the target market for this device. First, those looking for an eBook reader. Second, those looking for a mobile tablet-style computing device. In my opinion, I think those looking for a cheap tablet computer will benefit the most from the Pandigital e-reader.

For those looking for an eBook reader, the obvious competing devices would be the Kindle and the Nook. The biggest advantage that Kindle and Nook have over the Pandigital e-reader would be the eInk display, which is made to give the least possible eye strain for people who read for hours on end. The Pandigital device does have a nice display, checking in with an impressive 800×600 resolution at roughly 5″ x 7″ in size. It also has a reverse-mode for night time viewing which greatly reduces eye strain. But it’s not eInk. So if you are looking for a device that you will mainly use to read lots of text, you may lean towards Kindle and Nook.

But for the gadget geeks like myself who are looking for a more robust multimedia experience with bells and whistles, you’ve got to hand it to Pandigital for providing 1Gb of data storage, a display with an orientation sensor that will reorient the screen when you move from portrait to landscape, the ability to add 32Gb of flash memory, an integrated email program, audio player, calendar and a clock. File transfer between the device and a PC or Mac is easy via the USB port. Add to all of this a touch screen display, and you truly have a working tablet computer/eBook reader on the cheap!

You can’t beat the multimedia extras with the Pandigital device, but I must mention that the new Nook beta operating system will allow you to surf the net with its browser. It’s not the final version, and they are working out the bugs, but it is usable. Therefore, you do have some use beyond the book reading. But for pure book reading and downloading, the advantage goes to the Nook for being able to work with the most possible eBook formats.

So the conclusion is, if you are looking to get your foot in the door with a low-cost tablet concept, I’d give this Pandigital device a try. But before you write off the boring black-and-white display eInk Nook device, realize that there is a great possibility that the Nook 2 could be released before the end of 2010 with a color eInk display. Yes, I said color!

Still can’t decide which way to go? Write a list of the things you want to use your device for and rank them according to most important to least important. Match your most important needs with the device that suits you. Then realize that once you go out and buy that device, it’s going to be obsolete by the time you pull into your driveway before you even get it plugged up into the wall to charge it for the first time.

Do you own a Kindle, Nook, or Pandigital e-reader? Which is best, and why? Shout me out a holler and tell me what you like and dislike about it, or if you have any regrets or recommendations on your purchase. Sound off!