I haven't tried many of my Kindle Fire reading features, but I believe it allows you to take notes, bookmark, highlight,etc. As far as page numbers are concerned, while the pages themselves are not always numbered, it does have a feature that tells you % read and number of pages read. I doubt that corresponds to page numbers in a print book. I use the Lending Library a lot to read books ordinarily you'd have to pay for. These change out occasionally, but many always seem to be free.
My sister has an iPad. She likes to read magazines. The larger size screen is much better than the Kindle for that. Plus, you can get different apps for downloading books that Kindle might not support. Kindle doe not support ePub files, for instance. Also, take a look at the Samsung Galaxy. I have several friends who use it and are quite happy with it. I think the screen size is a little bigger than iPad and it does pretty much the same thing.
If you don't want to pay the price for an iPad and don't need a lot of what it can do, but like the larger screen, Kindle DX might work well. It's B/W screen is 9.7" which, I believe is about what the iPad is. It runs on 3G, and according to the blurb, has a rather long lasting battery. I am likely to consider the DX if my Kindle 2nd Gen dies on me.
Does anyone use Google Books? Does it use real page numbers? It seems to when I am on the computer, but I don't know about the downloadable e-books from them, and I don't know if they offer freebies.