Wait to see what B&N has to offer with the Nook 2. It would be irresponsible of me to recommend a Kindle when the Nook 2 might have some amazingly cool features that might make me jaelous.
I seriously doubt that that is going to happen but you never know. (winks)
On the format, I doubt that most people are going to notice the difference between EPub and Mobi. Amazon has the most books available and there are plenty of alternative sites that you can download books from without cracking DRM or converting. I have never used EPub and I can safely say that I have greatly enjoyed my e-reading experience.
"(Maybe it's just me, but it's annoying when I read a book and can't either skip chapters or go to a TOC) "
Ummmm you can get to the table of contents by clicking on menu, choose location, and TOC. It is pretty easy to do.
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