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I have several hundred books on my Paperwhite and haven't run out of memory yet. If you are concerned about storing books from non-Amazon sources, use Calibre on your laptop to keep your eBooks organized and upload them to your Kindle. ITs simple and fairly intuitive. eBooks don't take up a lot of space.

I've had 3 Kindle's since the very first model came out, right before my last deployment to Iraq. I was pretty pro-book and anti-Kindle, right up until I got one. Now I would give up my cell phone or my personal laptop before I gave up my Kindle. Battery life is amazing, reading on it is very much like reading an actual book, it is lightweight and it can hold thousands of books. The Paperwhite display is very nice. IT is much easier on the eyes than reading on a tablet.