I have a K2 and sold my K1 when I "tech refreshed". All in all, I'm really happy with it because of the Amazon kindle book prices AND the tools found via the mobileread forum. It isn't just calibre for me but a handful of apps which make it easy to use most eBook resellers and convert it to the proper format on my mac (similar stuff on PC). Having said that, I live in the USA so the kindle books are cheaper for me and all titles so far seem to be defaulting to available in this market. Your situation might not be the same.
I also considered the Sony PRS-300 for use with overdrive libraries, which again, is only helpful if you live in an area with a decent overdrive library or can purchase a membership (not as plentiful these days). In the end, I just decided it wasn't worth purchasing another device when I'll inevitably upgrade my kindle when a worthy new version comes out. As others have pointed out there's less Sony reader apps than there are free Kindle reader applications and I do find it useful to load a few books on my iPod touch.
My kindle fits in my purse but yes, I do switch out handbags so I'm carrying one that is a suitable size. Otherwise I have the iphone app and that fits into my pocket very nicely.
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