I'm not sure the loss is even close to being blamed on their ebook business. I mean, they had one of the worst natural disasters in history in Japan, and their online infrastructure has been under attack, and hacked, for the last month or so. Sony has egg on their face, but they still make high quality products.
I spent a good deal of time at Best Buy today. I looked at the Nook Classic, Amazon Kindle 3, Kobo, Sony 350, and Sony 950. I already have a Nook Color for reading in the dark, so I was shopping for a new eink device. The build quality of all the Sony ereaders was better than the others, yes, even the Kindle. The screen on the Kindle looked a little more crisp and the page turn buttons seemed extremely comfortable. The Nook Classic dual screen eink with LCD navigation was extremely clunky to me, especially after using my Nook Color. The Kobo felt cheap, but honestly I loved its presentation and user interface. If it had a better screen I would have picked it up I think. I don't like the Kindle keyboard at all. In the end, there was no budget or anything I was following and I purchased 3 Sony 350s. One for me and one for each of my two sons. I'm going to see how I feel with it tonight and tomorrow and if it isn't too small for me I'll keep it. My sons are having fun with their new readers as I type this.