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I suggest before you make a decision, you pick up some of the promotional free books available at every store and practice stripping and converting to see if you experience any technical hurdles that might make things more difficult than you'd like.
Currently, newest model Sonys and Kindle have the best e-ink screen (the "Pearl" one with greater contrast).
Kobo is nice enough for a very basic reader, but if you think you might want extra features like highlighting or text-to-speech or dictionary usage for non-purchased books, you should probably go with something else. Also, the Kobo currently doesn't handle internal links (this is apparently being worked on for a future firmware update), but this is probably a moot point as you mentioned your wife reads mainly fiction and will probably not need to access footnotes.
Kindle's main weakness is format incompatibility, and also you can't adjust menu size which might be a consideration if there are any visual difficulties in that area. In addition, organizing your books can be kind of frustrating, as the Collections system leaves much to be desired.
The classic Nook can read the most DRM formats (B&N ePub, Secure eReader, ADE ePub and PDF). But non-B&N books have second-class status which means that certain built-in features like having the cover show in the LCD screen browser are reserved for purchases. But you can get around this by rooting the Nook.
Hope this helps, and welcome to MobileRead, fellow Canadian!
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