I have both and personally prefer the 300. I just like the form factor better. I have not found the smaller screen to be a hindrance to my reading.
Having said that, I only use the device for reading. I do not use the MP3 player. I personally am happy with no storage card slot. I can get plenty of books on the device's hard drive for me.
I used the wedge light cover on my 505, and although it was great, it does add weight to the book. I now use a MightyBrite clip on light which I feel really sharpens the text well.
IMHO, the only thing I think that is lacking on the 300 is a dictionary. I still love a 505. If I had to rate the two, I'd say the 505 is fantastic, and the 300 is fantastic +, particularly if you have minimalist tendencies. Your mileage may vary.
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