I ended up trade in my broken PRS-505 for $34 credit after much argument with the rep in Sony Style store. They only trade in working units. And I missed the $75 credit promotion which had ended before my PRS-505 broke.
The PRS350 was on sale for $129 last week, and with $34 credit, I ended up paying $95 for PRS-350, which I'm pretty happy with.
Initially, I was willing to shell out $229 for the PRS-650, but SonyStyle store did not have one in stock, so I waited, and I'm glad I did. The PRS350 is very light, very dainty, thus I would have to purchase the cover to protect it. Another $50! I thought that I wouldn't like the 5-inch screen since I'm used to the 6". But really, I didn't mind it too much and I quickly adapted to the smaller screen. I could hold the PRS350 with one hand comfortably and my wrist wasn't even straining. I read a lot at night while lying on my bed so this is a huge plus.
I did try out the Kindle, and I liked it okay. The sound of the button clicking was 'louder' on the Kindle, especially late at night, and somehow that irritated me. I really disliked the keyboard because I wouldn't have any use for it. I don't mind converting books into whatever format because that hardly take up any time. I don't load hundreds of book on the device anyway so I don't care about features like organizations or collections, etc. I know exactly what book(s) I'm reading and I'm reloading every week.
I think the Sony appeals to me because it's classy and I prefer the brushed steel look than plastic. In the end, it's the appearance that counts for me. ;-)
Thank you for all your feedback. I learn a lot from all.