I bought a Kindle recently from Amazon, and I'm very happy with the purchase. It's really one of the best choices you can make on one, but the major limitation is that only can do books you get from Amazon, and not the popular epub format that pretty much every other reader can use.
The Kindle 2 is $189, a little bigger than a paperback book, and lightweight. The contrast is great and page turns are fast. I totally recommend this one as the selection on amazon is great for Kindle Books, and it has free 3G wireless to shop and download the books directly onto your kindle when you buy them. My favorite part of the kindle is that I can download samples of any book onto my kindle. It really helps weed out what I want to read. Unless you're big into anti-DRM stuff, this is currently the best reader on the market.
Chapters and Indigo have an e-reader called Kobo, and it is a bare bones e-reader. No keyboard, no wireless, just a plain old reader. Supports all formats of books, has expandable memory, and the kobo store is pretty decent. You can use the kobo with epub so you can borrow digital books from the Calgary Public Library. The page turning is a little slower, the screen not quite as clear, and the page turning joystick thing is kinda meh in my opinion. You can buy the Kobo for $149.
Sony sells e-readers as well but there isn't much that separates them from the pack, aside from their touch screen readers. They have glare issues though so I can't recommend them. Sony's readers are decent quality, support epub books, and stand middle of the pack for me. They range from $149 to $249.
As for book prices, the books I buy from amazon are generally $9.99. New releases range from $10 to $17 from what I've seen. There are literally thousands of books between $3-6 dollars and every day there are hundreds of books you can get for free.
If you have any other questions feel free to ask.
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