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You can download freebies from B&N but again, you'll need to have a credit card on file to wirelessly download anything from B&N.
For library books, I don't think you can actually download them through wifi on the Nook. If I'm not mistaken, you have to download them to your computer and then sideload them through Adobe Digital Editions. It's easy to do but obviously not as fast as just having the books download directly to your device.
You can get a lot of freebies with the Kindle too. The library is pretty much out of the question, unless you're willing to go through some extra steps on your computer (with library books, you're going to have use your computer with either the Kindle or the Nook).
The Nook and the Kindle both have web browsers. I haven't used the Kindle browser but I don't like using the browser on my Nook. It's really awkward to use. It's really slow and I think the Nook's touchscreen is too slow for things like typing in a web address or typing in the search bar on Google. Plus, I think the black and white of an eInk screen isn't good for viewing webpages. I much prefer using the internet on my iPod Touch. You can use the Nook to browse the web but it won't be like browsing the web on your computer or on a mobile device like a tablet or smartphone.
I think both the Kindle and the Nook are good for getting free books. For web browsing, they're probably both adequate at best. However, I would keep in mind that their primary function is allowing you to read. They're both in your price range. So I guess you would just have to decide whether they serve the functions most important to you well enough for your needs.
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