The Kindle can have no ads. It just depends if you want to pay the extra $20 or not.
The nook's biggest failings are that it has partitioned storage so for side loaded eBooks you only get 500MB and the rest is for eBooks you buy and download (via WiFi) from B&N. Also, the UI of the nook is a mess.
Given the choices of just a nook and a PW, go for the PW.
I know you did not mention any other brands, but, you might want to take a look at the Kobo Aura that's on sale now for $99. You might be able to get one in a local independent bookshop if you live in the US or you can order from Kobo or Chapters. The Aura has a 6" screen and a front light. Plus it handles ePub.
If you are still unsure, have a read in the Kobo forums. A lot of what's talked about on other models like the Aura HD and Aura H2O are relevant to the Aura as they use the same firmware.
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