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For me there is no question. If you need a small portable device, get the Sony PRS505. It does a reasonable job of reading epub and PDF as well as RTF and LRF. It has slightly better contrast and with Calibre can display newspapers and magazines. On top of that you can pick one up fairly cheap.[One caveat--if you are a big book "buyer" you can't beat the convenience of the Kindle 2]
That said, I have switched to the DX as my main reading device which rarely wanders far from my hands. The larger real estate is wonderful. I can read books as books. Many PDF's are ready to go without any changes because of the larger screen. I am willing to carry the bigger package for the sake of the pleasure that the bigger screen brings in reading a wider variety of content.
Its good to have options.
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