I've bought seven Kobo devices for myself and other family members. If I walked into a shop today and they had a H2O, I would buy it.
My experience mirrors GeoffR's. Very few of the bugs have really affected the basic reading experience for me. And most have been fixed over time. The few times I have talked to customer service were reasonably good experiences. But, they were only about books, not the devices.
As the others have suggested, a factory reset and test with the original firmware is a good idea. That will prove if it is hardware or something in the software. Upgrading from their to the current firmware can solve some problems.
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