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Couple of points - if you're doing much reading you'll likely find that e-ink (rather than LCD) is the way to go.
Be aware that most (my guess) display models won't likely have the newest firmware on them. Firmware updates can make a big difference in terms of functioning/features, so make sure you check out the forums for the reader you are considering to see what has changed. Definitely check them out hands on since that will give you some idea the feel of the reader. Same applies to early reviews of some readers.
Search function is available on most readers (Kobo currently doesn't have, but the developers have indicated it coming)
Ignore whatever they claim for battery life. I'm sure there are some differences, but the numbers they quote don't really mean much in reality and nobody seems to rate them the same way (they're a marketing gimmick).
Realize that the screens are fragile and susceptible to damage if the reader gets twisted (a soft case likely isn't a good idea in a backpack). It may not show up when it gets twisted but may break overnight at a later point.
Don't worry about the black flash between pages. For almost everyone you will stop noticing it after 1/2 hour of reading the first time (it really bothers a small number of people).
My personal bias is for the Kobo Touch, but I've only ever owned a Kobo so I can't directly compare. I like the size/form and way it works generally. I almost didn't get it because it was only touchscreen, but even as someone who normally hates touchscreen with the infared sensors (rather than an actual "touch" screen) I don't mind it at all.
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