I've got my wifi only, ad-free Kindle Keyboard in a nokey skin, which I selected due to the fading keys. It looks very nice. I don't like skins that much, I'm not good at putting them on. I do have 3 devices with them, though!
I know with my Sony I can put over 1000 books on it, and it has 2GB internal. That's definitely more than a year's worth, even though a lot are novellas. So the 2GB on the Paperwhite did not hold me back from purchasing it, although I had hoped for more, not less, space. It's plenty to load an entire year's worth of to-be-read books. The Paperwhite is fantastic, I just love the light.