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I concur with some of the above. The 505 is still Sony's best offering for some things. Since I generally make my own PDFs, I've experimented a bit with formatting for 5" screens and unless I'm typsetting at 6-7pt, I am not satisfied with making book blocks in that size. Despite the marginal linear resolution upgrade in the 300, I don't think it's going to display that size particularly well. If that Epson-Seiko LCD had ever come to fruition with 1600x1200 resolution, perhaps screens would be more tolerable with fonts smaller than 10pt (which is needed really to get good justification without excessive hyphenation on small screens like the 505 and 300).
I've been setting more books in 8.5pt Karmina and 8pt ITC Mendoza Roman for my 505, with decent results. I used to try 10-11pt fonts and didn't mind them much, but after a while, the extra gaps in the justification in paragraphs started to bother me. On the 300 I'd have to drop them down even more, and most people don't really enjoy reading that size, especially with the limited resolution and contrast of the display.
Of course, most people here seem satisfied at reading >12pt on their readers and don't mind poor, gappy justification (or left-justified with ragged right). For a good clean full-justification with normal-sized typefaces, you either need a bigger screen (perhaps 8 inches diagonal or more), or you need to use a lot of hyphens, which can get a bit annoying.
The 505 is still about as good as it gets in terms of e-ink right now, and gives that very useful SD card slot that the 300 doesn't. Now's not a bad time to buy since they're cheaper, and not hard to find yet. Looking around, you can get them under $200 pretty easily.
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