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I believe the SOny 650 is well out of the OPs price range since they are looking at the WiFI only version of the K3 and Nook in order to save money.
Amazon gave the books back to those who wanted them and they got two free books, plus a refund. The people who did not ask for the book back got the refund and three free books. It happened once and it won't happen again.
You are not locked into Amazons store. There are plenty of sites to buy Non DRMed Mobi books for the Kindle. It just happens that Amazons store is huge so many people buy their books from Amazon.
Heck, people with Sony's and Nooks, and Kobo's buy books from Amazon that they can't find at other sites. Many folks have posted on this. They buy from Amazon, strip the DRM, convert, and put them on their EPub reading device.
The Sony's and Kindles use the Pearl Screen which is a new screen that is vastly improved over the old screen. Nook Classic still uses the old screen. I would guess B&N would like to have access to the Pearl Screen but it is contracted to Amazon and Sony for the time being. Folks with few eye issues (age, prescritpion, ailment) report no real difference between the K2 (uses the same screen as the Nook Classic) and the K3 while people who have eye issues have reported a marked difference between the screens.
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