ibooks can only be read on the IProducts. No one has cracked the DRM yet. Amazon and Kobo can both have the DRM removed and the books converted to the appropriate format.
If you buy mainly from Amazon, I would go with the Kindle. It will save yourself some time. The Kindle Touch is a nice reader. You can pick up the basic model for $79 (non-touch, no keyboard) or the Touch version for $99 (More memory, speakers, touch screen).
The Sony T1 is a nice reader. It appears that the firmware fix has taken care of most of the major bugs.
I don't know much about the Kobo. People seem to like it but I think it is missing some of the features that the Kindle and Sony has. I am thinking collections but I could be wrong about that.
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