The contrast on the Kindle 3 does look a little better, but I prefer the touch functions, extra dictionaries, multiple book suppliers, and the already purchased books I already have from the Sony store. Yes, I could strip drm and convert them, but there's no point when I'm content with the Sony machines and experience.
Sony may be a little more expensive, and they may be a little more restrictive, but there are a great many of us who remember Amazon's first brush with E-books, and our 'personal digital libraries' suddenly disappearing without notice, refund, explanation, or apology.
For those interested, here are the Sonystyle links to the new 350 and 650. They aren't up for sale just yet, though.
PRS-350
http://www.sonystyle.com/webapp/wcs/...52921666257813
PRS-650
http://www.sonystyle.com/webapp/wcs/...52921666257815