German page "allesebook" (= all ebook) has an Article about the Inkbook Classic 2 and the Inkbook Prime, which I've used as a base for my assessment, because they are quite good.

You'll definitely notice the low resolution on the Classic 2. 800*600 is pretty low, and while it's still relatively good e-paper, it's going to feel like reading some image printed in the wrong resolution, but as a book, if you haven't got bad eyesight. Here's a comparison of some Kindles (the Classic Kindle also has got 800*600 with 167 dpi). Even the more expensive version does not have great dpi.

Also, the Classic does not have a backlight, which might or might not be relevant to your needs. I find it quite nice to read at night without disturbing my dearest next to me at all.
That said, it should suffice to run FBReader* and some small apps, just like the tolino, because at first glance, they should be of comparable performance. The big plus here is the external micro-SD.

At the bottom, the linked Article compares the InkBooks with the Tolino I've mentioned before as an easy-to-root alternative with better out-of-the-box software – and if you put a beefy micro-SD inside, it'll take a while to fill it up with books. But with the only hardware buttons on the tolino being power on/off, backlight on/off and home (which is "back" in normal android apps) that still does not fit your needs. (I think tapping the screen edges is not much of a problem, btw.)

I'll echo what their recommendation is:
Just try it. Get it from Amazon, try it for a few days and if it's a pile of rubbish, reset it and send it back. If I were in the market for a new reader, I might consider trying the Inkbook Prime, to be honest. But most likely it'll end up being just a bit too pixel-y for me, as well.


*) But based on my experience on the tolino: Don't fall asleep reading with FBReader and let the device fall over. It tries to select pages of text, the RAM fills and everything goes horribly wrong until you kill the app.