I think the new kobos with 2.1.5 firmware are now excellent, possibly even best of breed, text readers. But they still need lots of love with images. The feature I would most like to see in an update is the ability to open images from an epub to zoom in/out and pan/scroll as needed. Kobo also needs better dithering to give the illusion of smooth grayscale on images. The Sony did it since PRS-650, and Amazon added it to 5.1 firmware in Kindle Touch. I think this is now the only area (besides a few pet peeve bugs and what not) that Kobo software is behind.
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