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I live in Michigan.. does that mean if i buy a sony i have to download only from sony and same for kindle?
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No --
With a Sony, you can purchase non-secure (i.e. multiformat) books from Fictionwise and Baen. You can purchase books in ePub format from BooksOnBoard and maybe from other online stores. (I'm not sure who sells ePub books) Secure books in the .lrf format are only available from the Sony store.
With a Kindle, you can purchase non-secure (i.e. multiformat) books from Fictionwise and Baen. Secure books for the Kindle are only available from Amazon.com.
With either device, you can download books from MobileRead, Feedbooks, ManyBooks, Munseys, TOR, Steve Jordan, Jeffrey Carver, and several other sites.