Based on your requirements, I don't think the Kindle is worth its large price premium over the PRS-505.
The Sony is a good choice, but an alternative worth considering is the EZ Reader (Hanlin V3) which will be on sale this weekend at frys.com for $220 or less. Its primary advantage over the PRS-505 is support for real folders (important if you expect to have hundreds of ebooks on the device). Both have stellar battery life, I never turn my EZ Reader off and rarely have to explicitly charge it. I have three EInk readers and the one I use every day is the EZ Reader. This is because it supports the 3rd party OpenInkPot firmware (has its own forum here). This is already very good and is under active development. If you stick with its standard firmware, note that the EZ Reader is about to switch from MOBI DRM (encryption) to Adobe PDF and ePub - using the same software (Adobe mobile Digital Editions) that runs on the Sony PRS-505.
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