Kindle 3 is able to have its firmware upgraded now which mades the free internet a lot easier and more pleasant to use and on a par with the new kindles.
It can now recognise docx files and the books and documents that can be sent to it free of charge by using
xxxxx@free.kindle.com remain in cloud storage when removed from your device. So they can be retrieved when needed.
One thing I like about the kindle is the ability to cursor to a word and look it up instantly in a dictionary or wikipedia.
The 3g works fine and is still free.
I have the old kobo as well but my kindle is just light years ahead.