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Either one will work well as an eReader. Either one should get a case/cover on it, which will significantly change how it feels in your hand. Both provide a wide range of books in their native stores. And both can use sideloaded books, though the Kindle has an edge here with their dictionary working on sideloaded books as well. Format restrictions are a non-issue at this point - there are lots of stores that support either format, and there are ways to change the format and buy from competing stores. (I buy some books from the Kobo store when geo-restrictions require it, since my Kindle account is in the US, but my Kobo one is in Canada.) The final consideration you haven't mentioned is customer service, and I think Kindle definitely has the edge here.
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