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ChrisChillin hot most of the points.
If you want WiFi the Sony is out.
You can compare all three readers at Best Buy and get a feel for which one feels best in your hands and looks most pleasing to you.
A good case will go along way in providing protection for whatever device you purchase. I am waiting to hear from KlearKase that their K3 version is ready. Their K2 cover was made from some incredibly strong material and was suppose to provide a great deal of extra protection as well as be water resistant. They only made these cases for the Kindle. There are some really nice leather cases for pretty much every e-reader out there that will provide protection and some nice waterproof cases that do a good job of keeping sand and water out of devices.
Since you are in the military, I am assuming that there is a real chance you could be deployed. The K3 has the best battery life of the e-readers out there. The Nook has a replaceable battery so you could carry a couple of charged batteries with you just in case you are out and cannot recharge.
It sounds like you would be best served by searching the various book stores to see if the titles you want are available. Amazon has the largest store available and there are plent of stores, such as fictionwise, smashword, and baen, that sell books for the Kindle. Nook and Sony are EPub readers so it is a bit easier to put books on them from more mainstream stores. Then again, I have seen a bunch of posts from Nook users who have ended up buying Kindles because they cannot find the books that they want for their Nooks and they don't want to strip DRM.
Navigation is something that is a personal preference. I don't like a touchscreen so the Nook and Sony are not players for me. I find that the joystick on the DXG works just fine for me. Heck, I liked the scroll wheel on the K1 but realized that the joystick was better for looking up words and more precise highlighting of passages. I have not used the new pad on the K3 so I cannot comment on that.
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