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Kindle 3 cannot READ any ebooks purchased from other stores ! and it depends on the eBooks, protected eBooks cannot be read in Kindle
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What is ..... an untrue statement Alex?!!!!
But as far as your questions go, the best place for opinions about the Kobo reader are most likely to be the Kobo forum (rather than coming to the Kindle forum to ask Kindle users).
However, since you came here I'll go ahead and give my opinion.
I've played around with the Kobo devices (both generations) and found them to be a nice basic reader. The initial version had some clunky-ness to it but they seem to have really improved it with firmware updates.
I love the coupon discounts the Kobo bookstore offers and I shop there often, but I find the biggest drawback to them is that you cannot pre-order a book the way you can with both Barnes and Amazon.
If you are looking for a basic digital reader to handle ADE ePub files there is certainly nothing wrong with buying a Kobo.
However, I do like my Kindle 3 better.