I'm not upgrading.
IF I'm going to get another reader (BIG if) somewhere down the line, then it'd probably be the Kobo Aura. I've been reading around, and there seems to be a KEPUB output possibility for Calibre. In short, as long as Calibre can convert my EPUB's to the reader's format, I don't really mind which format is native to the device, be it AZW3, EPUB or KEPUB.
The Kobo Aura is a much bigger upgrade to the KPW1 than the KPW2 because of the many font customizations. (I hope they fixed the bug in which sometimes half a page would be white, for some reason.)
Even if I get another reader, I'll probably keep the KPW1, as the USE_ALT_FONTS "hack" together with my own custom Deja Vu Serif makes it a nice reader to read on. (And it sees the page counts put in by "Count Pages" in Calibre, something of which I am not sure that the Kobo can do.)
As for now, I've decided to stick with the KPW1, and try a snap-in cover from GoogleProduct. (My cover if fine, but as it's a slot-in cover, the reader is always askew.) See what I like best in the end.
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