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I have a Sony 300 and used to have a Kindle 3 before it was stolen. (I replaced it with a DX.) It's not quite the same thing as actually having a 350 and a K3, but it is a reasonable approximation for purposes of comparison, I think.
It seems to me that the Sony advantage over the K3 is physical.
For one thing, the 300 has a better physical interface, and I can only think that adding touch to the 300 would just make it better. It is easier to hold the Sony, and to click the buttons.
The physical advantage is the size. I find that I am more likely to carry the 300 around with me because it really does fit in my jacket pocket, whereas the K3 is awkward & sticks out. The Sony is also easier to hold.
The K3 advantage over the Sony is cross-device wireless syncing. Right now I'm reading the same book on my Sony & on my DX. Having to find the place I left off between the two is a big annoyance.
So my take on this is that if you read an ebook across multiple devices, the K3 is the better device, but if you do your reading on just one device, I think that the Sony is better.
My vote went to the Kindle. The reason is that I value being able to read on multiple devices. (But since I already have the Sony, & have learned how to strip the DRM from Kindle books, it doesn't make sense in my present circumstances to buy a K3.)
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