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For me it was screen size (larger, not smaller, though), features, and build quality.
I had an Astak EZ Reader before, and a Sony 600. I loved both, except for the screen on the 600. I loved the format support on the EZ Reader; that and Robert B's participation here are the reasons I chose it for my first ebook reader. But I fell in love with the Sony's quality build and found I love Collections even more than I loved folders. I had already settled on ePub as my format of choice, so all my purchases for the last year or so have been ePub, and what wasn't before, is now! So that took out supporting a lot of different formats as a desired feature for me.
I can read the 950 in places where I could never have managed with the 600, due to the screen quality of the 950.
I love the standby screens on the new Sonys, as well. That little bit of personalization goes a long way with me.
Yes, it was expensive. But I read all the time, I have always been a reader, so the cost for a product that I'm going to enjoy reading on (and still not have to have the walls lined with bookshelves) is very worth it to me.
I know I answered more questions than you asked, but... well, there you go.
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