The Kindle's primary AZW format is MOBI. So you could buy from Amazon today (e.g. for Kindle for PC), strip the DRM and read on your ipaq without conversion. Even if you buy a Sony, it is worth checking out the Kindle store for its selection and price.
For EInk, the Sony PRS-650 and K3 have similar capabilities. I would put the K3 slightly ahead, but the 650 is a good choice.
If you go with the Galaxy Tab there are many ebook apps available, and the DRM-free readers (in particular) seem to be in a virtuous feature race. The Kindle Android app is currently running behind the iThing Kindle apps, but I assume it will soon catch up and support a dictionary and more side-loading options.
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