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I started this thread so I should probably report back that I went for the Paperwhite and I'm really happy with it. I have no problems using it with calibre, the battery is great, the light is great, the cover is small and I like that it turns the Kindle on and off. I love the dictionary! That was probably the main reason I went for the Paperwhite as I was told the Kobo dictionary was not good.
Yes there could be improvements, but they're not deal breakers in my opinion. Epub support is not a huge deal as calibre can convert them. Collections could be handled much better, but it works ok if you jailbreak the Kindle.
I have not tried any other e-reader. I can only say that I'm happy with my Paperwhite.
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