[PassingStranger]

PRS-505 owner here, so I can't speak to either, but I've looked into both. I personally went for the 505 partly for the lower price, but mainly because I really like the toned down and simple functionality of it. It does exactly what its supposed to and it does it flawlessly. I feel like I really, really don't need a keyboard. The only thing I find myself wishing for at times is a dictionary.

But the geek inside of me adores the idea of the Kindle 2's 3G access (with free Wikipedia browsing!) and its other bells and whistles like search, email downloading, automatic RSS feeds, etc. I personally don't think I would use much of that stuff, as my mobile email stuff is taken care of via my phone and I usually bring my reader because I want to be able to sit down and read, not internet stuff.

Can't speak for the ergonomics of the Kindle 2, but I do love Sony's design.

[Edit]: I was just looking at the pictures of both and I would really hate to lose the right side navigation buttons because the nice thing about having both bottom and right side ones is that you can comfortably change the page no matter what weird position you're in. So that's a plus for the Kindle/PRS-505 But I also can't say anything about how the touchscreen is for non-stylus page turning.