In my opinion the Paperwhite 2. Get the best screen possible for the price. Can install KOReader to read non-drm epubs and other formats if you want to. IMO very good value at the moment. Also, the Amazon eco-system is, once again IMO, much better than the Kobo one. It is also often cheaper and there is a much wider variety. Of course, if it is okay in your country to remove DRM you should install Calibre and Apprentice Alf's plugins which opens up all of the main "ecosystems" to you and lets you keep a "futureproof" backup of your books.
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