i just bought a kindle 3(keyboard) yesterday as it was on sale at Staples..While I haven't tried the new kobo's, other than playing with the demo, I am happy with my Kindle so far. I don't think you can get Cdn newspaper on it though...but then again it wasn't a must have for me so I never researched it.
I didn't like the 2nd gen kobo as I hated that navigation button but the new touch ones seem a lot nicer. I may get one later for epub books that I can't get through Amazon
Edited to add:
I was wrong..Here is a list of
Cdn. newspapers that can be subscribed too on the kindle