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I just bought my second after the first one died (well, honestly, it was manslaughter... I dropped it). I bought a Sony in revenge. I took it right back. I love my nook!
Yeah, it isn't perfect, but it is very good. We are seeing regular firmware updates. Yes it does poorly for annotation. but I never write in my books, and don't need to take notes (I still use my computer for technical reading).
Forums like this often make a product look worse than it is. That's because people post their problems!
But I'll chime in: It's a great reader, and keeps on getting better.
P.S. I got the warranty that covers Acts of God. I have a one year old, and she is divine.... (very very bad pun. sorry.)
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