Well I've decided to bite the bullet and get both a K3 and a Nook. The heck with this DRM stuff!
I found that you can get CPO wifi Nooks for $99 with a year warranty from B&N. I am NOT gonna stand inline on BF for any of those $99 new Nook deals.
Edit: Back to square one. I spent a lot of time playing with a Nook and a CNook at B&N today. Then had a quick glance at a K3 at Staples. I just can't pull the trigger on the Nook yet. I really like the K3. I find the Nook just clunky. And I so wanted to like the Nook.
CPO = certified pre-owned
http://www.barnesandnoble.com/nook/cpo-nook/index.asp