Yeah agreed the kindle is a great choice however I did notice upfront that you said "cheap" and while the Kindle is relatively cheap there is the Kobo that is cheaper. The kindle Special Offers goes for $114 these days and the Kobo $100, the XOVision goes for $88 from JR.com and the Skytek goes for $75 at meritline.com.
If you want a great user interface you will need to spend a bit more for the Nook Simple Touch at Barns and Nobels which I think goes for around $125.
Most waranties are around one year so I don't think that is going to make that much a difference.
In my opinion you need to decide which is more important to you a great user interface (Nook Simple Touch) or price (Kobo).
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