Having both, I find that I prefer the navigation on the Sony over the kindle. Using the 5-way to navigate menus and dictionary lookup is a bit of a pain compared to the touchscreen. I don't use either for note taking but would think the Sony would be better due to more options (highlighting, underlining, etc.).
For just reading I find it to be a draw. I like the fonts on the kindle better but prefer the page turns on the touchscreen.
What I like the best about the kindle is the ease of getting content onto the device and syncing across devices. Something that wasn't as important back when I was only reading on one device, but now it's the most important feature for me since I also read on my mobile devices.
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