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As you note, there have been many discussions already here at mobileread specifically about using the Kindle 2 in Canada.
I bought mine Nov 19 at 3:30 pm; it arrived at my apt in downtown Toronto Nov 20 at 1 pm. The price was "list" + "non-optional expedited International shipping" + the Amazon-approved leather cover + Canadian taxes and duty for US$352.99.
The chief local alternative is the Sony PRS600 (the 300 model is the other model available in Canada). It's $350 + $40 leather case + Canadian taxes for Can$440 -- about $75 more. You lose: wireless connectivity, read-to-me. You gain: ePub.
Not all content at Amazon or Sony E-reader store is sold to Canadian addresses. The only way to tell is to set up an account and try buying stuff. And don't be fooled by the "one million Google books" advantage of the Sony device. Experiment with the PC reader version and poke around with the tools, interface, search, download capability.
Both support other PD sources like Project Gutenberg and manybooks.net -- there's lots of book content there.
The wireless works fine in Canada -- and in Mexico where I took the device recently. Wikipedia is available for free and is quite helpful for "morsel surfing". If you leave wireless on, it will automatically sync your "where I left off reading" files between PC and Kindle. You can use the wireless to send yourself non-Amazon files but there is a charge. Purchasing books from Fictionwise is an option; but wireless delivery is charged per KB. Regrettably, if you choose to purchase books from Amazon via download, and not wireless, you still pay the wireless "roaming" fee. US accounts also pay this when outside of AT&T's US territory. Free samples are free -- so experiment away!
The USB connection works very easily -- just like plugging in a camera, you instantly see "kindle drive". And it's free. The supplied USB cable doubles as an AC charger; the detachable end of the USB cable is the charger itself. You can also charge via USB port directly.
I have no regrets about the Kindle 2 -- it's well designed and does exactly what it says it does. The Canadian exceptions are clearly laid out on the Amazon website. The ePub is the only thing to give me pause but I expect this industry issue will be addressed eventually. As the Kindle runs Linux OS in the background, there's nothing to prevent it from reading new formats in future with a simple (wireless delivered) firmware upgrade.
If you purchase it for reading, you'll be delighted with the flexibility and usability. If you expect to use it as a netbook substitute, or a stand-in for a iTablet, you'll be disappointed. But to read: awesome -- in bed, on a commute, on a plane, in the john, in the bath or on the beach you'll have dozens of books at your fingertips with a two week battery life. It's pretty amazing.
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