I think the Kobo fits in just fine. The current model will gravitate to their b&w single purpose entry level -- $99ish. Then you will be able to buy the $159 colour reader Literati. Or sync with a Samsung Android tablet. Or iPhone, Blackberry or Android phone.
Kobo is trying to get its bookstore as widely available as possible and forge the live links -- like Kindle has -- between devices of the identical content. Nook oculd do that too and are to an extent; but they are US-only bound. Sony hasn't shown much interest in pursing that at all. It kinda makes it a Kindle / Kobo race internationally (potentially anyway).
I think Kobo is making all the right moves: it's only been in market 11 weeks in the US.
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