I love my Kindle. It's not perfect, but as e-reader devices go (and I've been trying different ones for 10 years) it's by far the best available.
In addition to everything you can buy from Amazon, with a little easy modifying, you can read any mobipocket book, including DRM protected ones bought from a mobi-compatible store. There are directions at mobileread.com. Plus, there are tons of free, legal books around if you go looking. Tor just gave away 2 dozen free ebooks. If I leave the whispernet off when not in use, the battery lasts for days without charging.
I have a 2 gig card in my Kindle, over 200 books so far, and I still have 80% free space on the card. It's as easy on my eyes as reading printed books (easier, really, since I can adjust the font) and as someone with a bad back, I appreciate being able to read while curled up on my side. That's something that's never been comfortable with a regular book.
Is the Kindle perfect, or all things to all people? No. But as an ebook reader, it's really good. And I believe that Amazon is in the ebook business for the long haul.