I finally purchased an ereader this weekend. I went with the Sony touch though I was up in the air about which one to get so had to narrow down the field to three:
The Kindle Touch, Kobo Touch or Sony Touch.
The Kobo got ejected early in the running since it doesn't provide audio output so it's a no-go with audiobooks.
The Kindle, with it's 4gb storage was pretty descent but is 4gb really enough? NOT FOR ME!
I went with the Sony, though it only has 2gb storage, it allows for removeable storage in the form of an SD card up to 32gb! And it aslo has audio output.