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Obviously I'm biased, but in my research before buying, the Nook won me over by supporting EPUB / sideloading books, having a memory card slot, library boook borrowing support, pricing, and the in-store service (exclusive offers, being able to read most books in their store as if I was picking it off the shelf without buying). The latest 1.5 firmware makes the device faster (page turns are blazing) and better book organization options.
It also plays music, has a few games, and includes a web browser. I don't use most of these because I want it for reading books, but they're nice to have. Just my $0.02.
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