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You can load a lot of books on the space the K2 gives you, although I'm partial to the expandable memory, so I prefer the K1.
You can get books for the Kindle (or the Sony) from sources other than their respective bookstores. I think the Amazon selection is larger and on the whole less expensive than that of Sony.
I don't think there is an application for the iPhone that will read the Sony proprietary format, but there is a reader (Stanza??) that will read several formats, and there is the Kindle application for the iPhone that will read the Amazon proprietary format.
I've got three K1s and one iPhone. It is nice to be able to make progress on the same book on all four devices ... and I think that you will find sharing an account with your spouse works really well.
I'm not positive how many books either of the Sonys will hold ... but I'm positive all of them will at least hold a few hundred. With expanded memory, my K1 will hold about 10,000 books.
You can back up your Kindle books on your own computer if you wish. I do not depend on Amazon to do my backups. It's nice to know that the media is there ... but I prefer to do my own backing up.
I would assume that you could also do a computer backup of your books if you owned a Sony.
What ever you get .... I hope you enjoy it.
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