I'm with bob on this one.. smaller keys or touch screens make for more mistakes.. plus touch screen means glare.
My thoughts are this: the 505 originally peaked my interest while I was wandering around Fry's. I just thought this was a great gizmo but then was blown away by the price tag. I've only been researching a couple of days but here's what I've noticed.
The Sony is 100 times better looking than the Kindle. I originally thought Sony was the way to go considering all the positive reviews. Then I encountered the Kindle. For 60 dollars more (read 40 dollars less) you get the best of both Sonies (sonai?) and more!
The zero glare, the search, the built in, convenient dictionary, free access to wikipedia anywhere in the us, similar dimensions, same size screen, better picture quality, subscriptions...
Also, now that I notice on the Sony, the right hand page turners seem quite small
As far as formats go, I don't think that'll be an issue.
TL;DR I started off gung ho for the Sony, until I learned about the Kindle and all its features.. I probably woulda felt horrible had I learned about the Kindle AFTER I bought a Sony.
Thanks!