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Well, I ended up spending hours running back and forth from Borders to Barnes and Noble comparing these. It was a very very close call, but I ended up with the Kobo. The Nook's text is slightly better. However, the lower weight of the Kobo really can be felt and that was one of the determining factors. The other major factor was that I found the Kobo much easier to use -- the Nook controls don't effectively harness the touch screen's potential.
All of that said, I think that were I a person who was actually going to buy ebooks (rather than getting them from the library and from the public domain), I would definitely get the Nook, because it would let me buy books with the device itself. Furthermore, the screen is a bit better and it is noticeable, though I am not sure how much of that is actually the sreen and how much of it is a better font.
I actually think the Honda/BMW analogy is apt. The thing is, Honda's generally get better mileage and are more practical for many uses, so it isn't so simple to choose. Yes, for the hardware it includes, the Kobo is slightly overpriced, but the reality is that we're not talking about loads of money, and I am uninterested in the Nook's additional features (which come at a cost of weight and battery life).
Now to see whether I change my mind in the next several days! I really wish the Kobo came with the Nook's screen!
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