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I have both and much prefer the T1. It has a useable web browser (for getting library books, accessing Dropbox, gutenburg, wikipedia lookup, etc.), much better PDF support (on-device cropping!), and better UI overall (IMO). For example you can zoom any page to view maps/charts with more detail, while Nook has no equivalent. Also it has audio for MP3 playing (if you like listening to music while you read, audiobooks etc). Free form annotation using stylus, and a notepad app.
I like the physical qualities of the Nook for the most part, but the software is disappointing (no landscape mode, need to toggle reader settings constantly when switching books, no file management on the device). I have never been able to get fully comfortable with the Nook's page turn 'ridges' (even after hundreds of hours logged).
I read mostly 3rd party content on these devices, and the T1 is much better set up for that (as long as the 3rd party content is not from B&N - Sony seems to willfully make this impossible).
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