Personally I haven't had any problems with conversions from epub to mobi. The formatting seems to be retained.
Correct me if I'm wrong but currently in the market there's no e-reader out there that beats kindle 3 in screen quality (e-ink pearl) and battery life (~10-30 days).
But look at the "News" Section in the forums. I read of some cool new e-readers that may come out in the future. Maybe you could consider waiting for those devices? In that case, it depends on when you want your e-reader (now or in a couple of months).
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