I love physical books, but love my Nook. I had an original Nook and it died a painful death after getting run over
. I ended up saving some gift cards and such and getting the Nook color about 3 months ago. I love it! It holds tons of books, has a good browser, now does apps, holds pics and video, and is open source for reading any type of e-book except for Amazon books.
I am a bibliophile with several hundred (if not thousands) of physical books, but I really enjoy my nook. I can load several books, switch between them at any time, they give a free book every Friday, and if I am in B & N I can read any e-book they sell for free for an hour a day. (Of course I could just grab the physical books to0, but that way I can read books that some people may frown on if they know me)