After considering the $250 Nook color ereader, I happily chanced upon the Pandigital. I bought a used one for $81, but it was in Perfect condition. After many failures, I did some internet research and finally succeeded in upgrading the firmware to the latest version. Besides being an excellent ereader (I can read for hours without any eye strain), I can also surf the net and get my email, though this isn't its main strength. I bought a $6 screen protector on eBay after I noticed that I had scratched the screen slightly with just my (unpolished) fingernail.
Its weaknesses compared to a Kindle are relatively short battery life (maybe 6 hours w/o WiFi) and that it is a little heavier. However, these things didn't stop me from giving it a 5-star rating. Couldn't be happier with this wonderful little device.
March 2012 update: For some reason, the Wi-Fi stopped working. I searched the internet for fixes, thinking I would probably have to uninstall and then reinstall the firmware. However, I was relieved to find the fix and it was extremely simple. Go to Settings>Privacy>Factory Data Reset. This restored my Wi-Fi capability. The Home screen background changed and I had to reinstall some Android apps, but that was very easy to do and now my Pandigital is perfect again. Hope this helps anyone who experienced the same loss of Wi-Fi.