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I finally played with a Kindle3, after having had my 350 for a few days. You know what? I am so glad I did not get the Kindle. I love the freedom to hold the 350 any which way I want, and those physical button on the Kindle (which I imagine you don't even use very often), are so in the way! Secondly, after having used a well-implemented touchscreen on a reader (it's perfect, by the way), I don't think I could go back to physical buttons, especially awkward ones like the Kindle has.
So, for the act of READING, which is by far the most important function of any of these, I'd say the Sony 350/650 is without question the best, and beats the Kindle3.
Being tiny and barely weighing anything is also a huge plus in my opinion. I had a 505 before this, and I am not missing the (considerably) extra weight, nor even the extra inch (because the Pearl screen is so much sharper than the previous type).
This is just my opinion. I think Sony isn't wrong when it says that these will sell on "quality and not price". Of course, one has to use one to know it, and the vast majority of the populace will probably never even give it a chance and just go Kindle.
I don't care about audio capabilities or browsing. I have an iPhone4. It's far better at both those tasks, and it's with me at all times. I wouldn't say no to an SD card reader on the 350, but at the same time, I probably won't need one. I can honestly say that I never once used the mp3 player on my 505, so I knew for certain I had no need for that functionality on my 350.
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