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As people have said, it depends on what you plan to do. I read science fiction, and either I know the words (English) or the author made the words up (all the other planets). I don't search around, I just go from page to page. My Sony, with leather cover and polycarbonate hard case, are lighter and cheaper than paperbacks. With Calibre and it's many plugins I can read any book format I've ever found.
I have a 505, the 600 and 650 haven't convinced me that the touchscreen is worth the smudges. If you don't touch the screen, by using the buttons, you never have to clean the screen.
My wife has a Kindle 2, and the keyboard isn't a good handle. It's bigger than it needs to be (though the Kindle 3 diminishes that a little). The radio is just a waste of battery, it's always off. Turning on the radio is no less work than plugging a Sony into your computer.
The iPad is bigger yet. While it's massively chic, and color, my books are still black and white except for the covers. Sat next to a guy reading one on a plane last week, it was OK. A little glare off the shiny glass and he had to clean it with a cloth to get the fingerprints off.
Price is the remaining issue. Sony is adding "features" like the touchscreen rather than pushing down the price. That will be up to other companies I guess.
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