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I've never had a problem with my 505; when I switched from Sony's software to calibre a few months back it was for the greatly improved features. And I'm reasonably sure that Sony can't wipe out books I've bought and paid for, certainly not if I'm using calibre, which Amazon has already shown both the ability and the willingness to do.
The Kindle took off because it was being pushed, hard, on the home page of the most popular online retailer, instead of left drifting at a little kiosk off to the side of the information desk at Borders, which is generally located in a low-traffic area of the store (people who need it will go there, but browsers circulate around the walls). People who hadn't even known that ebook readers existed in the first place bought Kindles. It has nothing to do with the quality of the actual device (a flimsy-feeling plastic thing that wastes valuable real estate with a sort-of keyboard, and is effectively, for most people, totally locked to the Amazon store) and everything to do with promotion. Sony can't sell water in the Sahara; Amazon could probably sell sand there.
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