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I have both Kindles and Kobos. The Kindle 3 is a very nice device, with great integration with Amazon's bookstore. Of course, it is primarily for .mobi files.
Particularly with the release of the Kobo Touch, our Canadian alternative is a finally a true alternative. Of course, it is primarily for kepub and .epub files. A really nice side benefit is the ability to borrow ADE DRM library books and play them back on the KT.
All else being equal, I am quite happy to keep my Kindle 3 for mobi and Kobo Touch for kepub/epub. The savings over buying paperbacks of the same titles easily covers the cost of the devices in a reasonably short period of time.
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