I would say that all of the e-readers met your requirements. You can modify the fonts and spacing on all of the e-readers. How much tweaking do you want to do? If you are fine with minimal options, any of them will met your needs. If you want to do a ton of tweaking, then a Kobo is best.
Side loading is available on all of the major e-readers and all of them should hold more then 500 books. I have a PW2 which has well over 600 books on it.
All of them have models under $200. Heck you can get some for under $100.
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