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For maximum choice, you really need to strip DRM. Not everyone agrees, but this is probably legal in the US for the personal use of ebooks you bought. Then (if you have a Windows PC) you can buy ePub, LIT, MOBI and eReader and format shift to whatever format is best for your current device. This is the approximate order of ebook quality, although the difference between ePub (best) and eReader (worst) is often not very much.
Even with this strategy, it is hard to beat the Kindle for price and selection. I prefer to buy from FictionWise, but about half my ebook purchases still end up being from Amazon. Note that Kindle AZW ebooks are MOBIs and their DRM can be stripped using mobidedrm. Kindle TOPAZ ebooks are locked to the Kindle, and typically are not available in any other format. You need a Kindle, or an iPhone, to buy Kindle ebooks.
If you want to keep the DRM in place, then MobiPocket was until recently the obvious choice in the US but Amazon (who own MobiPocket) seem to be killing it off. Barnes and Noble now own eReader (via FictionWise) and this is likely to become dominant, unless B&N try to lock it down. In the UK, ePub is dominant and likely to remain so. Overall, it remains impossible to pick a single DRM scheme for the long term.
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