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I would go with the Kindle (surprsing I know). In random order: It has a better dictionary. The dictionary, bookmarking, and highlighting features are easier to use on a Kindle. It has much better battery life. The Pearl screen is great. Collections can include books that are sideloaded even when they are not bought from Amazon.
In the end, I think you will be happy with either device. If library usage is not important to you then the Kindle is easier to use and has a better battery life.
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