The MacBreak Weekly podcast #68 has an interesting review of the Kindle (starting around the four minute mark). The take away was that most people don't realize that the $400 cost includes access to Sprint's 3G network as well as a web browser*. The reviewer used the Kindle to look up directions on Google Maps and read his RSS feeds as well as read books purchased from Amazon's Kindle service. A $400 device that only allows you to purchase $10-15 ebooks may not be very compelling, but a $400 device that provides unlimited 3G internet access is a different story for a many people.
* It's worth noting that the web browser is currently found in the Kindle's "Experimental" menu. It is possible that the web browser may become a pay service once it becomes a non-experimental feature of the device.
Forgot the link to MacBreak Weekly...
The tiny size, light weight, and long battery life make me want one of these really really badly. I wonder if libraries will eventually just lend people these and instead of borrowing a ton of books, you'll just download everything you want to borrow.
The question remains of whether you would want to curl up in bed with your Kindle. Seriously, I often read before bed and I'm wondering if the experience would be just as good (or better) with a Kindle as with a brand new shiny paperback.