The Nook Color will not run apps straight out of the Android Market, but that does not mean it cannot run them. In fact, they have done a lot of tests on apps from standard Android smartphones and they pretty much run on Nook Color, which has Android 2.1 under the hood. (The Nook native interface and apps are just standard Android application layers.) Barnes & Noble special Nook SDK runs on top of the standard Android one and gives developers access to exclusive extensions and APIs for the Nook and its interface. So porting Android apps is not difficult. B&N says it is more like optimising them for Nook than porting them.
Nook Color screen is supposed to be better (less reflective) for reading than iPad as it's using a new LG screen with anti-reflection coating.
It allows to play video, listen to the music, view Office documents and PDF's.
If you prefer eInk screen, original Nook is still available.