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I have the 505 and just bought the nook about a week ago. I have noticed that the nook screen seems to be a bit brighter and the device is slightly heavier. The battery does not seem to last as long, but since I've only had it a week, I can't really say definitively.
In terms of software, the nook does need some tweaks and improvements (mainly better organization of sideloaded documents). As beartard mentioned, though, B&N seems to be on the ball, releasing updates rather quickly thus far. The main reason I bought the nook was to be able to load all my eReader files that I've purchased from Fictionwise without needing to convert, so I would really appreciate better organization for non-bn books.
I'm shifting to the nook as my main device, mainly because my 505 has two rows of dead pixels that are driving me nuts. I was completely satisfied with the 505 otherwise.
Hopefully that helps!
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