You're right on a lot of counts, but I'd like to point out a couple things. First, there is an "ipod-like lock switch." It's a slider on the top left of the device. When you use it, it turns off all the buttons, and shuts off the screen. And it's not "off" when you do that. Sliding the switch again brings back all functionality in approximately the same time it takes to turn a page. The actual REAL off switch is buried in menus. So yeah, read, flip switch, carry in bag, flip switch, read. It works very well.
The other thing I wanted to talk about was what you said regarding Sony's software. You're correct first of all, that it sucks. :P It's just not very well designed. However, it does in fact include drag-and-drop support for a lot of things (drag books from library onto the device tab in the left hand pane, etc), and you can certainly create your own collections. Check the help file about how to do this; it's nicely documented, and easy to do.
Oh, and I guess one last thing. The prices at Sony's store aren't always great, that's true. However, there are in fact several other online ebook sellers that will allow you to download books in a variety of formats, often at more competitive prices. It's the work of a few seconds to convert most popular formats to one compatible with the PRS-505.
Hope some of that helps, and I'm glad you like your reader!