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My review is now over a year old, as is the "Kindle Keyboard" as Amazon calls it now. There are newer models: the basic, cheapie Kindle and the Kindle Touch, and of course the Kindle Fire quasi-tablet.
Each of these models is an excellent choice. Whichever one is right for you just depends on your preferences.
The 3 e-ink Kindles are Kindle Keyboard (this one), Kindle Touch (the newest "flagship" model), and the basic Kindle. All 3 of them have EXACTLY THE SAME 6" DISPLAY, with the same sharp typeface and high contrast that reads like ink on paper with no eyestrain. The Kindle Keyboard is the oldest of these models, and I got one of the first ones when they came out in August 2010.
I still absolutely LOVE my Kindle Keyboard and use it almost every day. I have read dozens of books on it. I like the newer models, they have some neat features, but the experience of reading a book on them is no better or worse than on my 1-year-old Kindle Keyboard. Page turns are now smoother and faster on the newest Kindles, but the difference is not enough to make it worth the cost of upgrading, in my opinion.
The touch-screen interface of the Kindle Touch is pretty neat. But, unlike my iPad, I only use my Kindle to read books, and reading books is just as nice on any of the current Kindle models. I don't consider the touch screen a "must have" feature, and I'm normally obsessed with having the latest version of every tech product I own.
For that reason, I think the cheapest Kindle is an excellent choice. It has less memory than the Keyboard or Touch, but it has plenty enough for 100s of books, and of course you always get free storage in the Amazon cloud for any books that you don't need to have on your device at this moment, such as books you've already read. All your Kindle books are automatically stored in Amazon's cloud, whether they're on your device or not, and getting them back on your device is super-easy, regardless of which Kindle model you have.
If this will be your first e-reader, you can choose one of these Kindle models or the Barnes and Noble Nook Simple Touch. The Nook Simple Touch has the same 6" e-ink display as the 3 Kindle models, but different typefaces. I think the letters are a little sharper on the Kindles, but the Nook Simple Touch typefaces are also very readable, plus you get a few more choices of typefaces compared to the Kindle.
The "Nook First Edition" is still available at a steeply discounted price, but it is a poor performer by today's standards. (You wouldn't buy an "ipod first edition," except possibly as a collector's item, would you?)
Those are the e-ink Kindles and Nooks. Of course, you might be considering one of the quasi-tablets, Kindle Fire or Nook Tablet. Both are excellent, both have their strengths. Nook Tablet's main advantage is it has twice the internal memory as Kindle Fire - but B&N only lets you use a small fraction of it for third-party content, whereas you can use all of KF's available memory for 3rd party content. And, KF is more affordable.
In my opinion, the real deciding factor between a Kindle product and a Nook product is not any specific feature of the hardware or software - both product families are excellent. The real decision point is whether you prefer living in Amazon's universe or Barnes & Noble's. Content you buy from Amazon only works with Kindles, while content you buy from B&N only works with Nooks.
Both universes have their advantages, so it's a matter of personal preference. B&N's main advantage is you can take your device into your local B&N store and get real assistance from a human being. But Amazon has dedicated customer service lines for Kindle support and you can get a real human on the phone very quickly (in my experience), and they are very helpful. Plus, Kindles and Nooks are generally very easy to use, so you'll probably need very little tech support.
I'm already heavily invested into the Amazon universe, having purchased many dozens of Kindle books; plus, I have an Amazon prime membership, which to my family is very worth the cost (you get free streaming video of TV shows and movies plus unlimited free 2-day air shipping on most Amazon purchases). So if my Kindle were lost or stolen, I'd buy another Kindle product rather than a Nook product.
Whatever you buy, you'll probably be happy. The choices available now are quite good, and prices are better than ever. It's hard to believe that the basic Kindle at only 79 bucks performs better and costs 1/3 as much as the now two-year-old Kindle 2 (an older, slightly larger version of the Kindle Keyboard).
If you're considering the Kindle keyboard, you can read my original review of it below. (Sorry it's so long!) The "nook" it refers to is the "Nook first edition," which was fine in 2009 but is a poor choice by the standards of currently available Nook and Kindle models.