I just got a Kindle 1 because I read here that it could read library Mobipocket books. It can, but you have to run them through some scripts to make them Kindle-compatible.
Although I'm a technical person I find this to be a hassle. I'd prefer just to check out the library e-books and put them directly on my reader without mucking around with python scripts. I do stuff like that all day at work and I'd prefer to leave it at work.
My library, and maybe yours, also offers a lot more PDF books (=Sony) than Mobipocket (=Kindle with hassles). You might check that out before you 'decide.'
I'm happy with the Kindle nevertheless, and I'm also looking forward to wirelessly buying the occasional e-book from Amazon's vast library.
I also think blue is the best Sony color
Greg.