The Washington Post’s technology blog, Faster Forward, is reporting on some significant changes to its e-book Reader, including lower pricing for books and new models.

In terms of books, the price of the average book will drop a couple of bucks, from $11.99 to $9.99. As the blog points out, that makes it more competitive with the Kindle 2, Amazon’s e-book gadget.

The two new Reader editions are Pocket and Touch. The Pocket’s screen is slightly smaller than the Touch, at five inches, compared to the Touch’s six-inch screen. It can hold about 350 standard books, Sony says, and should give about two weeks of reading time on a single charge. It will also be priced well, at $199.

Its bigger, more expensive ($299) brother, the Touch, features (you might have guessed) a touch screen, with the ability to turn pages with a swipe of the finger. You can also write on the screen with a stylus, and even export notes and such.

The Sony eBook Store has more than a million public domain books available as free downloads, as well. It’s good to see this market starting to mature and expand.