Barnes and Noble just announced/leaked the Nook. I immediately dismissed it as a "me-too" device. I have a Kindle 1, I think it's fantastic, I've spent a lot of money on books for it (though I only buy books that I don't intend to lend to people), and... wow, the Nook is shiny. And it has wi-fi. And PDF support. And a very nice-looking user interface. And it runs Android OS. And hey they were smart and found a way to let you share books with people. I have not gotten my hands on one, obviously, so it could turn out to be cheap crap, but it looks like they did a really good job and thought through things very carefully. I should not be buying gadgets to replace one that works perfectly well, but should I happen to spill a cup of coffee on my Kindle, I'll have to think very seriously about replacing it with a Nook.
(Also, odd coincidence: I live not too far from a store named Kindlenook. Weird.)