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My decision on the matter was that you really need both. Kindle is fine for what it is - it works fine, is very intuitive and Amazon has a great selection and prices (but not in every case). The kindle is tied to Amazon darn tightly. The Sony and other readers that support the epub format are more independent. With the Sony and B&N stores going epub then odds are we'll have the same new release choices in short order (pricing may or may not be the same).
There are a ton of classic public domain books available for either device.
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