I've always liked the idea of an ereader, but DRM and poor features have always kept me from committing. Testing the 505 demo units over the past year convinced me the e-ink quality was worth the expense & I started researching a bit. The features "leaked" on the 700 convinced me it would likely be my first reader.
I visited SonyStyle San Diego today fully prepared to buy a 700. I was able to compare the 505 and 700 side-by-side. I was immediately struck by the lack of clarity, sharpness and contrast on the 700. It reminded me of the first Palm Pilot I owned... muddy text on a slightly less muddy background. I looked for contrast settings and brightness settings, & I changed font sizes up and down. I asked a salesperson about how it appeared to be harder to read & he shrugged and suggested a Kindle (oh yes he did!).
So the e-ink layer that is so sharp on the 505 is recessed and covered with a second, top layer (of glass?) on the 700. It seems the additional layer requred for touch screen and for a space in which to add sidelighting required a significant compromise in screen clarity. It seems for some, the great new features justify the purchase. I agree that the navigation, touch screen, and somewhat swifter page turns are attractive. But for me, looking for my first device, the lower quality reading experience is a deal killer.
Now I must decide if I can tolerate the "old" features and sharp text of a 505, or wait and see what a Kindle 2 brings to the table. Gosh dang it, Sony, I always want to ask you to dance and you usually nod yes but then always seem to step on my toes!