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If wifi isn't an issue and you're not planning on purchasing content regularly from Amazon, I'd echo the love for the Sony. The size is lovely, the screen crisp, it's just plain nice. With the possible exception of the Sony Library software!
That said, after six months of using my iPad and getting addicted to the ease of being able to buy or transfer books wirelessly using the Kindle app and Stanza, I just went out and ordered the new Kindle 3G. In addition to the nice selection in the kindle store, I really appreciate being able to read a book on one device, and continue later on another one, picking up at the spot I've left off. I don't always have my iPad or Reader with me, but if I'm stuck in a waiting room, I can pop open my iPhone and while away my time with my current book.
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