Very similar story with me. 505 to T1 to 350 to PW2.
I was really very pleased with the T-1 and was looking forward to updating it to the T-3, but only because I hadn't seriously evaluated other options.
I know there have been many complaints about the Sony reader store, but I've had good luck and bought many epubs there.
There were many software glitches and freezes with the Sonys, although it wasn't noticeable until after using the PW2. I assumed they were normal - having been conditioned by desktop MS Windows over many years.