I'm on my fourth Kobo WiFi in about three weeks... The first exchange was for the sleep problem with side-loaded books, which I thought was a hardware issue (it's not, it's a firmware problem). The second was cosmetics- I wanted the silver instead of grey. The third was for a messed-up screen. (And all of them still have that sleep problem; I'm waiting for another firmware upgrade to deal with it).
But, having said all of that, why do I keep exchanging it instead of just asking for my money back and going with a different reader? Because I do love my Kobo. It's exactly what I want in an e-reader, and the price is right. Plus, I've gotten great customer service from both the Kobo help line, where I'm never on hold for more than a few minutes before I get to talk to a real person, and from the Chapters store where I bought it (and keep exchanging it).
Yeah, the Kobo WiFi seems buggy at this point, but I trust that the bugs will be resolved in time. Meanwhile, I just consider myself to be a beta tester for a product I really like.
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