I set up KOReader with a jailbroken Kindle. DammitJeff has a good video introducing the topic. UI is definitely awkward, but it is awesome and pretty "hands off" when set up. It also has built-in support for OPDS so downloads from places like "Project Gutenberg" are a breeze. Also, if you are a homelabber with stuff like Calibre & Calibre Sync, it all works as you'd expect.

Sounds very interesting. I'd love to take a look if open source?

That's a really cool idea!