I'm in the market for an ereader right now. I've considered everything from the Kobo (I'm in Canada) to the iPad; weighing the pros and cons of LED screens versus eInk, etc. I've decided to buy an eInk device for a few reasons (I'm a heavy reader so I benefit more from the specific pros of those devices), and I'll do so in the next month. I mention this in case Jeff Bezos is trolling Slashdot, because I won't be buying a Kindle, and the reason is almost 100% because of the lack of ePub support. I don't want Amazon telling me that they will deign to allow me to borrow Kindle books from libraries. I want to be borrowing the ePub books that my library is already lending anyway.
I've pretty much ruled out the Kobo because of the difficulty of entering text (which I don't see myself doing very often, but it's plausible), and so I've decided I'm most likely going to be getting a Nook. I'm in Canada. There are no Barnes & Noble stores here, but the device works fine if you don't need 3G support. This means I'm willing to make a 6 hour round trip to buy a device from Amazon's competitor (to skip dealing with high shipping fees and Customs crap) because of one feature that could have easily been added in software updates by now, and which they seem to be totally obstinate in not adding. You don't need a partner program with 11,000 US libraries when you can just add ePub support and, poof, suddenly your device can work with what thousands of libraries are already doing.
I think Amazon is suffering from Not Invented Here syndrome, and if they're not careful they're going to get thrashed in the market they invented. They'll end up like Diamond and Creative, who were early to the MP3 player market right at the time when the demand had bubbled up to that magical point where a device can really take off, but got destroyed because another company did it better.