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Minor downsides are that the bookmark feature is through a menu rather than the Sony'd dedicated button.
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That's true, although the Cool-er does remember the last page you were on, but if you want more bookmarks you have to do that in the menu.
The menu could also be better organized, with the things that we're likely to use the most frequently (go to page, font, bookmarks, library) at the top rather than much further down the list.
I agree with codeMonkey that the cool-er is really best for reading things like novels, sequentially. I can imagine that it would be really combersome to have to naviage around alot with either the bookmarks or go to page command.
Epubs are great on the cool-er, and in general, have much better appearance. The new version of calibre does a great job converting pdf's into epubs.