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Strictly speaking about Kobo and/or Nook Touch and respecting your thread,
I would say Nook Touch.
The Kobo has better PDF support but Nook Touch has more reading options customizations, like the ones SCION mentioned: margins, line spacing, ePub hyperlink support.
I can be wrong but I think there are no physical turn page buttons for the Kobo but Nook Touch have those, it is nice to have the choice, then Nook Touch again.
But if you are not in USA, forget about Nook. B&N support is inside the states only. Just yesterday someone posted a "horror story" about issues with his Nook Color, he's in Australia. Do yourself a favor and if you are not in USA, get a device with support on your country or living area.
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