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I went with a K1 off Craigslist for $200 in early March. I have no regrets. The K2 doesn't offer enough more to spend the extra $200 (factoring in $30 for a case which isn't included but is needed) IMO.
I considered the Sony's too, but convenience is a huge factor for me with gadgets. So the Kindle won with the Whispernet, ability to send samples, the selection of the Amazon store, and Amazon being cheaper than the Sony Store on every book I was interested in and looked up.
The DRM issues kind of suck, but don't really affect me as I almost never re-read books, and something I love enough to want to re-read I'd just eventually by a hardcover version of anyway.
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