First, I love my nook. It was the right decision at the time (the price had just dropped and the Kindle 3 wasn't out yet). Now, with the Kindle 3 in the mix, though, it would be a tough decision. It's so slim and light. However, there's that whole DRM issue. The nook allows for DRM and most of the books you buy from B&N have it, but it also allows you to get books from other places. The Kindle, not so much. It can be worked around, but it's a pain.

One thing I really like about the nook is that where Amazon just dumps a new reader out there, B&N keeps updating the software for current users. Their about to drop update 1.5 which is supposed to drastically speed up page turning (it's really not that slow) and add some organization ability to your library. I prefer the touchscreen because of its versatility over the hard keyboard which I almost never use. Another nice thing is that you can go check out the accessories, cases, extra batteries, etc. right at your local B&N store. No need to order online based only on reviews.

On the downside, B&N seems to be putting a lot of their effort behind the color nook which I think will be a complete and utter fail. So, I don't know if that will hurt their eInk nooks.

I would probably lean slightly nook and definitely wouldn't bother with 3G (I have it because I got it for the same price as the WiFi one essentially, but I rarely use it). Definitely spend some time with both.