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One consideration is that if you tend to be 'unlucky' with your ereaders, there's no guarantee that other manufacturers will be as forthcoming as Amazon are about replacing them for you (though if they're less than a year old, they all should do so), particularly for a broken screen.
Personally, I'd probably still go ahead and choose a Kindle, for the Amazon support and ease of getting all those free books. However, you should consider doing as jbcohen suggested, utilise Calibre and google apprentice alf for drm removal. Unless you are really uncomfortable with that, you don't need to let the fact that you already have a load of .azw books restrict your choice of ereader.
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