Where are you getting all the gift cards? I want in on this.
This is a fun post to respond to since how to spend money has never been an issue for me.
Since you prefer eInk for reading and you already have an iPod Touch, it doesn't seem like you would get very much use from the NOOKcolor in the long run. It may be just a novelty to play with for awhile then collect dust.
I would go on a serious eBook shopping spree. Treat yourself to some over priced books that you wouldn't otherwise buy.