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I also tried the Kindle DX, now that you mention it. At the time, I found that it had many limitations, including the lack of a touch screen, and the limited software (I believe there are few options for controlling zooming). It also has a fairly old and unintuitive operating system, although this is perhaps not such a big deal. Another issue, though, is the weight: the DX weighs 3 times more than the PRS-T1, and is fairly large and thick. Finally, the Kindle DX is using an older version of E-Ink technology, and the contrast is very poor, so for example, while you might think that it'd be okay to read in portrait mode, because of the size, the light contrast makes this difficult.
During the summer, when I was weighing in these considerations, I chose the Kobo Touch over the Kindle DX (after trying them both, for a good period of time). And now I think the Sony Reader Wifi is better than the Kobo Touch. But that was before the large price drop for the Kindle DX.
I tried to emphasize---although it may not have come out clearly in my first post---that in the end it comes down to taste quite a bit, and there is not really a clear choice. You'll have to decide whether you like e-ink vs lcd whether you like portability or having a large screen.
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