I'm in Australia and have a Kobo Touch, while my husband has the Sony T1. (He was going to get a Kobo also, but a while before it actually became available here, sales to Australia from the US and elsewhere were being blocked. I had bought mine from the US soon after it came on the market.)
Sony doesn't have a good selection of books (here at least) but Kobo has a very wide range. However, prices could well be higher than elsewhere as I just see the $A price when I look at the Kobo site.
So I can certainly recommend Kobo in Australia and also the Sony T1 which does have the advantage of sorting the library by category.
Our libraries here are not yet lending ebooks, but I believe it will come in another year or so. It's not a problem for me as I have a large heap of TBR books both paper and electronic.
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