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I'll second the idea of going through Project Gutenberg rather than Google Books. Everything available there is in the most popular formats - both ePub and mobi, as well as others. ManyBooks.net is also a treasure house of free downloads in a broad range of formats.
I went with the Sony, in part because it doesn't have wifi or 3G. No telling what the new versions coming out soon will offer. Like you, I'm partial to the stylus - got into the habit with my Palm T3. On the Sony 600, you can either handwrite or "type" any notes, using the stylus to tap on a little onscreen keyboard. Haven't made extensive use of this feature, but I do like not having to literally type comments on a tiny keyboard.
You don't have to swipe to turn the page on the Sony. The buttons are along the bottom of the device, and since that's where I tend to hold the reader, it's just a matter of "pinching" to effect a page turn.
While you're still deciding, you may want to take a look at Calibre as a software to handle the maintenance of your e-books. They have a forum right here on MobileRead and it's probably the easiest approach to synching your reader with an iPhone or other alternate device. I downloaded the software about two weeks before I got my reader, and played around with downloading books from Gutenberg to prepare them for the reader.
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