I'm going with a Kindle.
The device is easily the best one I've used (haven't touched the Barnes and Noble one though). If there was any other use for an iPad in my life I'd probably get that instead, but 800$ for an e-reader is silly.
I'm not worried about DRM or vendor lockin with the Kindle. In the next couple years, single store devices will fall by the wayside and so far Amazon seems like the only store to have it's platform on multiple devices already. Meaning, I can buy a ton of books on the Kindle and still have access to them on my computer, iPhone, netbook, etc...
Only draw back is that you can't do e-books from the library. But considering I haven't been to a library in over 10 years, it's not a huge loss to me.
My wife got a kindle a few months ago. Since then she's read about 15 books. It's more then tripled her reading pace - she loves it. 3-4 of the books she read so far have been free offerings.
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