I own a nook (a gift from my SO) and I love it! I've had it about 2 months.
What I love:
So far, it's compatible with any format I've needed so far (including Seattle library's electronic books in epub format). I haven't tried to use Gutenberg.
The battery lasts a very long time, and charges pretty fast. I haven't road-tested it on a plane ride or long trip yet, though.
The menu is touch screen, and in color. You can browse for books by looking at their covers, which I love. I don't think the Kindle is in color at all yet (*I think*).
It has a built in wifi connection so you can go online and buy books from anywhere. And you get bonuses (like free books) when you're in a B&N store.
It also has a built in dictionary and highlighter so you can look things up or mark them as you read.
The only real drawback so far is that you use the B&N website to search for specific titles (other than best sellers, new releases, or specific genres), and the interface is pretty clunky.
I bought the damage protection plan because I'm pretty klutzy, too. I bought a durable cover, and so far, no issues!