Don't underestimate touchscreens. Its true that previous Sony readers had aweful displays because of touch screen overlay. They fixed it with 350/650 models. Touchscreen navigation kills Kindle navigation any day any time. Its a one sided battle if you will
. Also since keyboard is not needed on sony readers they are more portable than kindlle with that keyboard. I used both Kindle and PRS-900 before and PRS-900 touch screen is awesome for navigation. It is much easier to look up words in dictionary by double tapping them on Sony touchscreen then it is to navigate to the word with Kindle's joystick.
I got PRS-350 2 days ago and with Sony's latest improvements its a perfect reader for me. 350 is going to my wife and I'll be ordering 650 this week as I prefer 6" displays