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That Kobo is a good choice if you want an SD card slot and you want to use Calibre to manage your collections (shelves), which I strongly recommend. Collections aren't hierarchical like computer folders, but they do have the flexibility of tags, so books can be in multiple collections.
The H2O has Adobe page numbers, so they don't correspond exactly to page turns on the device - how closely they correspond will depend on the font size you choose.
No e-ink reader has a backlight; they are all frontlights. The one on the H2O is nice and even.
You can still buy Kindle books (or books from most other places (not Apple)): go to Apprentice Alf's blog for DRM removal tools, and use Calibre to convert.
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