The publisher of iPulpFiction just tipped me to the new browser based reading app, the iPulp eReader. Like HTML5, it's a work in progress.
Update: I reported a bug and they fixed it.
Here are some of the features the iPulp eReader has:
- paged text
- page counting
- local font size & font face control
- full CSS 3 support within a story
The demo is here, if you want to try it. It should be compatible with Chrome, Firefox, and that other browser.