There's a pretty large selection of Kindle books at Amazon.com. Recently (abt mid-May), the $2 Whispernet charges have been dropped for many free titles -- including free commercial works. You can also download free samples of almost every title via Whispernet direct to the device.
Kobo's titles in Canada are less extensive, but there are some things at Kobo and not at Kindle; and Kobo does NOT deliver via 3G wireless so there is no Whispernet surcharge. That makes some titles cheaper than Kindle.
Smashwords have a surprisingly robust number of titles, available as both ePub (Kobo) and Kindle formats, many under $5 (and lots closer to $1).
Barnes & Noble (and the Nook) do not sell in Canada, period.
Sony's e-reader bookstore is maddeningly designed showing many titles not available in Canada (even when the same title can be had at Kobo or Amazon).
If you buy a Kobo, you'll also have access to public library books. The library system currently supports DRM ePub and DRM PDF, but not Kindle's format. The caveat is the library selection is extremely small (but growing).
There's a rich supply of free books from Mobileread contributors, Manybooks, Munsey's, and Project Gutenberg (be sure to check out the US, Canadian and Australian websites as content is different). Generally free books are available in Kobo and Kindle formats.
I have both the Kobo and the Kindle 2i and recommend both. I like them in different ways. Kindle is the by far more robust and featured-packed (built-in dictionary, 3G delivery), but the Kobo has the same size screen and screen technology and is cheaper.
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