Looking at the comparison chart with the line "More than a million titles available" and thinking about the leverage they have with publishers, I think B&N has already passed Amazon.

Most of those titles are public domain books scanned as part of Google Books and complete with OCR typos. Right now, Amazon's selection is better.

Confusing chart then because they list the free books as a separate line item.

In what regard? Depth? Breadth? Looking at their site I think they have enough of the popular stuff covered to give them time to work their way into the long tail before their ebook reader is in enough hands to matter.

Plus they have PDF for a much more affordable price than the Kindle (the Kindle 2's PDF support is mediocre at best, stupidly terrible at worst). That's a killer feature for people who may already own a significant library of PDF content.

And how long until the B&N bookstore will be able to match the number of ebooks offered at Amazon? Until then B&N will lose customers to the company with an already established library.

They already had eBooks store for some time http://www.barnesandnoble.com/ebooks/index.asp