I have a Nook. I bought the lowest-end version, which does have a wireless connection (it does NOT need to be hooked up to my computer to download books). I really like the color touchscreen at the bottom; it allows you to browse books by cover, and being a visual person I'm much, much more likely to remember the cover of a book than the title. You can also turn the page by swiping the screen with your finger, which feels more natural than clicking a button to turn the page. I do agree that unless you plan on reading a lot of magazines or kids' books, the Nook Color is not the best choice. The battery life is much shorter and the screen is basically like a computer screen. The black-and-white "e-ink" versions (which are the lowest and middle levels of the Nook) do not strain your eyes and can be read in direct sunlight.
Really, when it comes down to it I think most of the e-readers these days are more or less equal in the features provided. I ended up choosing the Nook simply because I liked the way it sat in my hand. Just try a few and you'll know what you like. :)