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A less basic alternative for a little more money would be the EZ Reader Pocket Pro. I think this is the best value for the money out there currently.
Note that the Sony is using very old mobile Adobe Digital Editions software (e.g. all ePubs are left justified). The Kobo is presumably using the latest version, and the EZ Reader (Hanlin V5) is also reasonably up to date with 9 font sizes vs 3 on the PRS-300 (and its firmware is continuously improved).
The Sony and the EZ Reader can handle Adobe lending library ebooks. The Kobo probably can too. The Sony can only handle either PDF or ePub lending library ebooks at any one time, not both at once. Note that PDF versions of fiction books usually "reflow" and so work OK, although not without artifacts. There are probably still more PDF lending library ebooks than ePubs out there.
I agree about the blue button. I don't understand why Kobo does not offer other colors. Otherwise it appears to be a good basic reader at a great price.
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