For what purpose do you use ereaders?

During our weekly meeting this morning, someone mentioned while attending TLA he heard that a librarian in a school used an ereader as a prize for teachers. This particular librarian was trying to get teachers to schedule library time for their classes, and not just last-minute library time, but schedule future library time. Every time a teacher scheduled library time, they earned a "ticket" for a chance to win an ereader. With library budgets becoming tighter, are ereaders becoming more popular?

In this online article from School Library Journal published last year, libraries are trying to find different ways to get students reading. This particular article mentions using ereaders, enabling reluctant readers to read a book (without being judged by peers because the cover can't be seen.)

If you have ereaders in your libraries, how are you using them to encourage students to read?