Just got a Nook Simple Touch. I was planning on getting a Kindle because of the library, but didn't for several reasons. Some points of consideration for me:

• The non-touch interface of Kindle seems clunky and outdated (esp. for stuff like highlights and notes). Likely a new one will be out this year, if it's a color e-ink one, I will probably kick myself.
• No library books (epub) on Kindle, at least not yet (Overdrive has announced they will do mobi later this year).
• No epub support at all on Kindle, although I think most free ebooks like project Gutenberg also offer Kindle versions (.mobi).
• The Nook runs Android! It can be 'rooted' and the Kindle and other ereader apps work, so I can read Kindle books as well on it.
• You can only get Kindle books at Amazon. Nook-compatible ebooks are of the open standard epub, those are available at different stores and even public libraries as mentioned above. I just checked out 2 books from my local library's website. It's great, even if availability and especially selection are very limited.
• DRM is something that concerns me, but it can be dealt with reasonably.

I just got it two days ago and I'm still experimenting. Haven't rooted it yet, waiting for the necessary SD card in the mail. I just wanted to know if you guys were using e-readers and if so what's your experience, where you get your books, etc. I know Norm likes his Kindle.

I was using the Kindle app on my iPod Touch, and it's surprisingly usable. Apple recently changed its terms so that such apps could not include links to their stores, so you have to open the browser app and go to the Amazon website. One reason I won't consider iBooks at all. Apple is annoying.