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The only main drawback I see from the PRS-650 is the price. If you include tax, the 650 is about $100 more than the kindle. With such a price difference, it makes it harder to justify buying the PRS even though it's the reader that I would prefer.
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If you live within the US, you can order yours from abt and not have to pay any shipping or tax. This should mitigate some of the pain of paying 90 dollars more for an e-reader.
http://www.abt.com/product/48670/Sony-PRS650BC.html
I also called sony and they offered 10 dollars off, after I told them my predicament regarding tax and shipping.