Have Both Also and..
Nook Color (1.1 rooted) wins hands down for the following reasons:
1. Not tied to a closed OS/Software system
2. Rooting was far easier than I thought and opened up many other Android readers - my current favorite is Moon+ because it scrolls. XDA-developers is a great site for advice and help in customizing a Nook Color
3. Nook is much lighter and more suitable for my smaller hands -I can also slip it into my jacket pocket.
4. Easy to sideload books/documents.
5. Finally, the screens are identical in response/color rendition/resolution (as they should be since both are in-plane displays made by LG - only difference is 7" vs 9.7".
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