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Sounds like the Sony is a good fit for you if money is not an issue and you are comfortable without wireless.
If you want wireless or are concerned about price, the Kindle is probably the way to go.
DRM and various formats are a trivial problem. You can get library books with a Kindle and you can get Amazon books for a Sony. Stripping DRM and reformatting take a couple minutes max per book.
The only thing that would make me wary of a Kindle is that they (as far as I know) don't reflow PDFs. You have to pan and scan.
But honestly, I think the K3 wifi is the best value going, and that comes from a happy and satisfied Sony user.
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