A lot of good posts with lots of info above!
Figured I'd share my personal saga...Back in July of last year I decided to get a nook to replace my aging 505.
I liked the nook okay, but didn't really like having to use the separate LCD touchscreen for navigation. It always seemed clunky to me--and looking up words in the dictionary (one of the main reasons I wanted to upgrade my reader) was a huge pain on the nook.
So, just two months later, Sony comes out with their new x50 line of readers. I'd only had the nook about two months, but convinced myself that I "needed" the Sony 650.
I consider the 650 one of the best purchases I've ever made! Love the touchscreen interface--and the dictionary is so much more functional than the one built into the nooks! I have to say, in my opinion, Sony really thought the interface though. Everything just works and is very intuitive. For me, the premium price of the Sony is well worth it--and when I had wi-fi access on my nook, I really didn't use it so I don't miss having it on the Sony.
Good luck with your decision--both readers are great at what they do. Personally, I just find the Sony interface much easier to use.
dordale