Our 5 yr old likes to read books on our iPad.
We read The night before Christmas, the night before Christmas, and last night, we read one pizza, one penny. Great books and both free. Tonight we read Bella the Dragon, from the iBooks store; also free.
Her reading skills and comprehension have improved quite a bit since we brought our iPad home. We have three folders dedicated to phonics,reading/sounds/writing, and sight words. We even have a few learning apps for our 19 month old.
Besides the kids, I find myself reading more since getting the iPad. I'm more of a magazine and newspaper reader, while my wife is mostly a book reader.
I'm sure that most parents are already aware of the Disney interactive books. Pretty neat for both children and parents alike. I like that you can replace the narrators voice with your own, and read to your child, or your child can record their voice and read back to you or themselves. Electronic reading is new for the whole family, and were enjoying it so far. We still mix in traditional books checked out from the library, but we're finding the convenience of having reading material wherever/whenever is hard to beat.