Superboyac, I've posted before about my husband's LG Optimus V, which is smaller than the iPhone. I don't want to sound like a broken record, nor a fan girl (heck, I don't even own
one of these phones), but my husband has been very pleased with the LG Optimus V (I think the V simply stands for Virgin Mobile--there are other Optimuses (Optimi?) for other carriers. Anyway, it's definitely NOT the most modern phone--I think it runs Android 2.2. But my husband uses it to read books, read his email, surf the Web, and a bunch of other things, including phone calls
. He claims that he can see the screen well even in broad daylight, and he loves the fact that he can carry it in his shirt pocket. In many ways, it sounds like it may meet your needs, and at a small fraction of the price you mentioned for the Xperia SX. The best thing would be to try to find it in a physical store, so you could see how it feels. I think the keyboard is smaller than I'd like, but my husband said that though he felt that way at first, he got used to it and now finds it OK. Anyway, good luck with your decision!