"I too" faced this choice. I too wanted the PRS-505 but ended up with a Kinda 1 (used). Why? Because I'm a cheapskate and couldn't find a used 505. On Craigslist they're about the same price, around $200.
Anyway for library books I believe the Sony is the better choice because of the native PDF support. Kindle will support unprotected PDF if you convert them. Neither is good for taking notes. I think a small laptop still wins in this category.
Greg.
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