sky. frankly I was skeptical about not having the pulp in my hands when reading. Having read through a third of my book I must say I like this form. There are some issues, and that may have to do with the conversion process.
Sometimes formatting isn't perfect -- line breaks can get messy at times, usually if I go back a page and then return it fixes it. But there are glitches. Far outweighing those to my mind however is the pleasure of reading a book this way.
As for the Sony-Amazon issue I considered that. I like Amazon's easy downloading -- they have their own 3G network so you don't need to download to a computer and then transfer, it takes a minute or two to download to your Kindle.
I also thought about buying a Kindle 1 and that probably can save money, but decided if I am going to do it I would do it right. I have seen the Kindle 1 and the 2 is much easier to use IMO.