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I had the opportunity to handle both a 505 and a 700 side by side for a few hours.
The screen is significantly better on the 505 - clearer, crisper, easier to read; that's not to say the 700 can't be used, but after reading for a while on the 505 and then going to the 700, I was extremely disappointed.
The 700 has the upper hand on every other feature, though - faster page turns, great zoom feature, extremely easy to use interface (which makes the 505 feel just... clumsy).
If being comfortable when reading is your top priority, you should pick up a 505 or wait for a better 700 (in about 10 months, probably).
If I were to compare eReaders and physical books, I'd say the 700 is like a little bit muddy print on a grey paperback, and the 505 is a hardcover quality print. You can read both, it's just not the same experience.
However, I'm not going to buy a 505. What I want from an eReader is:
- 505 or better screen clarity/contrast, at least 640x480 resolution, at least 9 inches
- dictionary support (English is not even my second language, but my third...)
- search
- annotations
As of now, nothing comes close. I'm hoping for the Plastic Logic toy, but...
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