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My experience was similar. I returned the (early) Kobo Touch and bought a Nook Touch, and it was rock-solid. I finally wound up with a Sony 950, which has also been stable.
I've lost patience with annoyingly buggy devices, and Kobo has yet to show any stable software, but, in the spirit of forgive and forget, I plan to try a Kobo Mini for its promised typographic capabilities and physical size, if they ever actually get around to selling them in the U.S. I'll buy it from NewEgg, as I've had good experience with their returns policy.
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