I briefly had a Sony Touch which I liked a lot until it just froze. I had planned to just replace it but Best Buy didn't have the Touch in stock when I returned it so I took my refund to B&N and got a Nook.
The new Kindle Wi-Fi and the Nook are pretty much identical except you can add a micro SD card to the Nook.
I still prefer the Sony Touch even though it doesn't have any Wi-Fi or G3 (honestly, when's the last time you needed a book so bad you couldn't wait to get to a computer?). The touch screen lets you turn pages just by sliding your finger across the "page" and add/remove bookmarks by tapping the upper right corner. Sony can also handle more formats than either Nook or Kindle.
Just my opinion.
Anyway, I figure a price war is always good for consumers. If you want a reader, now may be the time or deals might be even better by Christmas.
Btw, I saw an article that last month, for the 1st time Amazon sold more Kindle books than real books.