I am wrestling with many of the same questions.
However, if "- Ability to annotate text (make notes, underline/highlight, something to that effect)" is important to you, I discovered a YouTube review that illustrates this in both the Nook and the K2 (I assume the K3 is equally capable).
http://www.youtube.com/watch?v=pxkCELCrQ_A
Skip over to around the 7:00 mark to save some time. The reviewer is notably Kindle skewed and one of the test items is bogus (TTS capability). Still, I found it a valuable data point. There's nothing like seeing the device in action to help determine usability.
Observing the issues the reviewer encounters on the Nook touchscreen illustrate for me one of the frustrations in dealing with TS devices. Although they seem to work reasonably well 90% of the time, that other 10% when they don't do anything when you tap Tap TAP the screen drives me nuts.