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The Sony does accept EPub but it requries that you side load all of your books and there have been some issues with borrowing books from the library, although it appears that those issues have been fixed for the 650 and 350 series.
If you want an EPub reader I would recommend the Nook. It has comes with WiFi and for a little more you can get the 3G version. It allows you to buy books from multiple stores, such as Kobo, and read them without having to tamper with DRM on the Nook. It is less expensive then the Sony.
Personally, I own two Kindles, the K1 and the DXG. I am probably going to buy a K3 in the near future. I love my Kindle. It is easy to use and Amazon's bookstore is the best buy far. There are plenty of free books available for Kindle. I pick up one or two everyday, just check out the Kindle Free books topic in the Kindle section. All of the websites that have the out of copyright books make them available for Kindle. The Kindle also has the best battery life of the e-readers with people reporting 3-4 weeks between charges when using the Wifi or 3G option infrequently. The one draw back is that you cannot borrow books from the library.
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