Thank you all very much for your input.
I forgot to mention that the price is not an issue: I'm not changing e-readers that often and I don't mind paying a bit more for something with newer technology and back when I bought the PRS T1 it was the most expensive option for me. Basically I'd pay as much as needed for something that's
fast, reliable and works sorta out of the box.
I haven't made up my mind towards any of them yet, so your experiences and suggestions are very helpful. I am aware of the issues with the Kindle's screen, apparently the battery life isn't that great either. On the other hand reading the Kobo forums and seeing all the issues with the software makes me want to run for the hills. I know not everyone has the same problems and most don't need all the tweaks, but it would bother me having to do go through all the hoops to get the reader to behave as it should. I'm not in a hurry to get one ASAP, so I'm still checking things out.
Something that matters though: how easy is to set up collections/shelves on both these?
Please keep the suggestions coming as they are really helping me out here