Here is my take:
I was considering the Kindle (only K1 at the time) and the 505..
I ended up choosing the 505 because:
- $100 cheaper
- could get library books easily onto it
- I really liked the RED 505 .. lol
- I had more control over getting content on it
(in terms of formats it reads and can be converted and all the free reads that I could get on it.. a lot of them in pdf and 505 supports pdf reflow)
- Calibre software for converting (big kudos to Kovid for this!)
- it was smaller than Kindle
(I like to read in bed at night and it looked more comfy to hold.. esp. with one hand)
I do envy Kindle's 6 font sizes but haven't had any issues yet
with that on my 505. Also, there are hacks (is that the term?)
to add fonts or change fonts of the books so I could try that.
HTH