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I think the big difference is the note taking. Other than a textbook, I've never taken notes on a book I've read and I've never had the need for a dictionary. If you do take frequent notes, I'd stick with the Kindle.
The open platform was more important to me, as was the ability to take out books from the library.
I had read for years on my pda and while I liked the kindle, I didn't switch to an e-reader until the nook came out. I'd return it and pick up a nook.
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