A nook.
I have tried both, and the nook was the winner. the nook is able to accept PDF's, so that might help, and if you go into a Barnes and noble with it, all books on the Barnes and noble website are free to read in there.
AND IT HAS CHESS AND MUSIC CAPABILITIES!
Thanks for sharing the points behind why the Nook would be better! It is very helpful to know exactly what makes it ideal in your eyes.
(Hopefully others posts will too.)
-CF