A few weeks ago I started my own project and corresponding Facebook group for what soon became known as the Open Bible Project. The goal being to produce a version of the Scriptures for various e-book readers which, within the constraints of the device, has a useable user interface and readable layout.
Many, many versions already exist around the web, but either have hideously formatted text or are far too unwieldy to fit into typical usage patterns for the Bible. Of course others have been working on this problem, Osnova has produced several Bibles and developed a jump to verse technique using the search function of the device. Type ge.1.10 and find and the reader will jump to the Genesis chapter 1 verse 10.
I've used a similar technique, by hiding a code for chapter using white coloured text (doesn't show on the device but is still searchable) you can enter Gen.1, Matt.1 etc and the reader leaps to the correct chapter. As far as the reading experience goes, each verse flow into one another, with verse numbers showing in a smaller font.
Very soon I'll have an Open Bible Project website up and running, hosting the scriptures and various reference books online. Each user of the website will be able to annotate, highlight and link text across books of the Bible and the reference library. This customised version of the Bible will be available (freely) as a download for use on your reader, bringing those highlights, notes and links with it.