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Currently, after using both the Kindle 3 wifi and the Kobo Wi-fi, I can't recommend the Kobo. Everything else about Kobo company as a whole, including their phone apps are great, but their Kobo e-reader is still a work in progress.
If you want to use the Kobo store, or wish to stick with the ePub format I would consider the Sony devices. They are really nice and solidly built but you will pay a premium for them over the other devices price wise, and they won't have wi-fi.
The Kindle 3 is a very well built unit and very responsive to use. I have had no problems or frustrations using it--I can't say that about the Kobo. I have had problems syncing the Kobo to it's desktop app, using it's wifi option is test of patience just to update your library, newspaper publications don't turn out as well as they do on the Kindle, and getting through the menus can take time. When it actually comes to reading a book, the Kobo is fine--it's just everything else it does is somewhat lacking.
My suggestion, if you can afford it is to use the two devices your are most interested side by side for a week. Chapters has a 14 day return policy, Futureshop and Amazon both have 30 day return policies. It's what I did with the Kindle/Kobo, and I think I made a better purchase decision because of it.
In the end I chose the Kindle, but for you it might be different.
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