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I am having difficulty understanding why you would buy a Kobo at that price when the K3 or Nook has the same, if not better, features then the Kobo.
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It's very interesting when you get actual hands-on experience with the devices. Things happen that you may not have considered just looking at the features and specs.
I have a Kobo and a Kindle 3. I have played with the Nook and didn't care for it. It's too heavy and thick. The Kindle is new so I'm still getting used to it, but here's a quick, subjective comparison with the Kobo:
1. The bevels on the K3 are curved (convex) while the Kobo's edges are flat. The K3 feels like it's going to slip out of my hands because of this, whereas the Kobo feels more secure. This feeling is exacerbated by the K3's keyboard, which is where I grip my Kobo. I'm learning that I can grip this area pretty firmly without pressing a button but it isn't as comfy as holding the Kobo.
2. There's a lot of stuff on the K3 that I really don't care about, such as sharing bookmarks with the world at large. I did a little Kindle Store shopping on the reader and that was nice, but I just downloaded a free book. If I were buying a book, I'd want to download it to my computer first anyway, the way I buy an epub.
3. I like the dictionary function on the K3, but I don't expect to use it much. If the Kobo had that function, that would be nice, even if it were a little clunkier to use.
4. Page turns on the K3 are really quick! Wow!
5. The displays seem comparable. If I could put the screens side by side with no bevels between them, I might be able to discern a contrast difference. But the difference doesn't leap out at me like the page turn speed does.
If I were handling both readers in the store, I might very well go with the Kobo because it feels better to me, and I like being able to check out ebooks from the library. But since the Kindle is the known quantity, I agree that the Kobo needs to be more price aggressive. (On the other hand, Amazon has the deep pockets to compete on price, too, even if they lose money, so Kobo may have decided not to do that.)