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I have both and like the K3 better.
I'm not that impressed by the Nook's touchscreen. It looks nice but it's slow and is probably largely responsible for the Nook's bad battery life.
Nook page turns are slower than the K3's.
The Nook is heavier - definitely something to take into account if you read on your back holding the device above your face.
Being able to mail docs to the K3 is a nice feature.
I don't like how shiny the touchscreen and bezel of the Nook are. I found the reflectivity to be pretty annoying.
The K3 dictionary is easier to use (i.e. short definitions that stay on the page you're reading)
I think the best thing about the Nook is that it supports epub.
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