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If you've never had exposure to an e-ink device than you may be ok with the lower contrast on the 700. The majority of complaints on the 700 are from those who have used e-ink devices previously. If you were to compare the 505 and 700 side by side you would definitely see the dfference. If you are in the U.S. and live close to a Sony store or Borders Books and Music then you should be able to view both devices before buying.
As for for ebook devices, all of the other brands have an identical screen to the 505. Each device will have slightly different options and it just depends on which options you find important. If you haven't already, check out the Ebook Reader Matrix on the Mobileread Wiki (see top of page).
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