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My experience is limited to the Kindle; although, I did test out the Nook and Sony when I was shopping.
Free, public domain books: any reader will do this for you. MobileRead has a wonderful collection of public domain books that have been uploaded by the members here. I have a file on my Kindle that links to the ebooks here and lets me automatically download books (instead of downloading to my computer and then transferring over to the Kindle).
Library books: currently available on epub readers such as the Nook and Sony, but "by the end of the year" they will be available on the Kindle as well.
PDFs: I've been told that the Sony is best for PDFs but couldn't confirm for myself (the reader on display at Best Buy didn't have any PDFs loaded). Before uploading PDFs to my Kindle, I crop at much of the margin as possible and then switch to "landscape" mode on the reader. If that's too squinty for you, you can also email the file to Amazon and they'll convert it to a Kindle ebook file (note: formatting can sometimes go a bit wonky when you do this).
Online newspapers and blogs: the Kindle is really wonderful for reading text heavy websites. Someone else will need to chime about the other readers--I haven't heard anything about what sort of browsing capabilities they have.
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