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I guess it really depends on what is most important to you.
If it's being able to keep all your books on your ereader and easily sort them into collections, then the Sony edges it since it doesn't require the extra step with the collections plug-in. The plus of having expandable storage with the SD Card maybe isn't so important when you only read novels (the 3-4GB of the KK can hold a heck of a lot of novels).
If pure reading enjoyment is more important, the Kindle Keyboard wins as it doesn't have any issues with a reflective screen, and IMHO you simply can't beat the ease/comfort of the side page turn buttons over the buttons at the bottom. Plus the Kindle has a better battery life so will need charged less often.
Also, are you positive you can't download books to the Kindle Keyboard from your cloud storage? I know for example that you can do so with dropbox, by using the Kindle's web browser to navigate to the site and log in to your account.
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