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Why is your 3G so expensive? Not to say I don't think it costs too much, but ours isn't "quite" that bad.
In going with the ipod over the nook, I must also say that I have been resistant to ebooks. I had a few on my ipod for "fun", so I would always have something to read, but I wasn't seriously reading that way.
I prefer paper books, but the reality is that I'm running out of storage space, and with the ongoing coupon at kobo my books are much cheaper in ebook format.
Oh - the other thing in favour of the ipod is that we are mac people. I wanted something to replace my palm back when I got my first ipod touch. ipod has an email client, so you don't have to use webmail, which I like. Other apps are not just games, but also useful - soulver (calculator), kobo, nook, amazon, stanza (ie you can read books from anyone with no fuss), todo lists, calendars and so forth.
Of course I'm sure a rooted nook could do a lot of that. I had enough trouble getting my book covers to show properly though, I'm not up to rooting.
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