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I do not have a K4, but rather Kindle Touch. But given your options, and your specific requirements, I would have to think the Sony is by far the better value:
- audio/Mp3 player
- expandable storage (micro SD slot)
- better PDF support (on-device auto or manual whitespace cropping, easy zoom/pan, 2/3 column mode, richer annotation options, PDF bookmark and link support). I'm pretty sure K4 cannot navigate PDF links (footnotes etc.) (Kindle Touch definitely can).
- better web browser (works well with gutenburg, dropbox, etc.)
- much better navigation options (for both ePub and PDF). K4 will not navigate PDF bookmarks, and no 'scrubber' or fast page turn to quickly jump around with. You have to use goto page and enter page number with the 5way, which is awkward.
- if you want to annotate, the virtual keyboard (or stylus) is much nicer than K4's text input method.
- I like the touch interface. And there are physical page turn buttons as well.
Keep in mind no 6" device is going to be 'perfect' for PDF books, in general, unless they are formatted specifically for that screen size. But if you are going to do it, Sony is probably the best device for it (KT is very good also, and better than K4). I've read a number of PDF books on my PRS-T1 and found it quite workable, but it is not for everyone.
The PRS-T1 is my first Sony ereader. You'll find people here saying that they prefer the previous generation devices, but I've been very happy with the T1. I mention it because you might be able to find a PRS-650 for less money.
One reason to get a Kindle is for Amazon's ecosystem (e.g. Personal Documents service, which has free storage and annotation backup). The Kindle Store experience is much better than Sony's (more reviews, easier to find things etc.). But since your primary requirement is for something to read 'free PDFs' that probably does not matter much.
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