O.K., I just tried out the 505 to compare it again to the 700.
The screen of the 505 is better - no question about it. But, under sufficiently bright light, the 700 is O.K., and the difference between the two screens is significantly diminished. I guess the first time I went to the Sony Style store, I was comparing them under a very bright light, and that's why I went with the 700.
BUT, I actually tried the 505 with a book of about 500+ pages, converted from a PDF to EPUB in Calibre.
The book was easy to navigate and flip through on the 700. On the 505, it was a very different experience: First, I thought I had a blank page, then that I had not pressed the page button -- it was that slow! Choosing to go directly to p. 200 took ages - I mean I could have made a cup of coffee. And changing font size, which is natural and fast on the 700, is excruciatingly slow on the 505.
To boot, page changes on the 500+ page book were significantly longer on the 505, than changing pages on the short demo excerpts they had loaded on it. In fact, on the 500+ page book the time it took to flip a page was a bit too long to be considered an enjoyable reading experience.
Argh....
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