Books on the Knob has an entry detailing Border's relatively cheap upcoming e-reader, the Kobo. There are also details here on Borders' site. Two features I like are the organization (to be fair, Kindle will supposedly offer folders as of their upcoming update) and this: "The cover image of the book you're reading displays on the screen even when the eReader's off—it's just like closing a printed book."
Oh, yeah, and it's cheap. Wonder if that will make Amazon lower the price on the Kindle?