Using it for research with PDF files. If you are using it for research purposes, I wouldn't recommend the Kindle or e-book readers when it comes to digital books through their stores. There seems to be a lack of continuity with page numbers and creating a system that is easy to refer back to the physical text.
With PDF files, it is fantastic. I'm able to do my research, albeit, through one size fonts (small most of the time), and due to my source material, no text-to-speech, but it is far more readable that a computer screen, and the battery life kicks ass. I'll see what happens later with it when I am using different source material. But I'm reading with correct page numbers (counting the front page, I suppose, so it is maybe one page off for my reading thus far), allowing me to do research without a laptop that goes dead every few hours without an outlet.
The online browser experience is nice, for what I do, at least for now. I'm sure I will crash that browser frequently enough in the future.
Doing in-text searching is fantastic, but I can think of very specific times where the physical text will probably be better. If one has ever looked at the History of Woman Suffrage volumes, it is clear to any reader that they are a monster to navigate in the flesh, and as a result, it will be difficult to navigate in virtual form. Nevertheless, the price difference was incredible (5 bucks for 3 volumes via the Kindle store versus some 100 dollars for 3-4 volumes hardcover used). In-text searching is what I could have really used in the flesh, but it is more cumbersome to quickly travel from random page to random page, like a physical book. So, for constant back-and-forth travels between index and multiple pages in the work itself, the Kindle is going to be a bigger pain in the ass for most of that type of research work in comparison to just having the book in front of you. One can do this sort of thing on the Kindle (and I'm sure I'll learn some tricks soon), but it is a process of hitting a button then selecting another on-screen option before typing in the page you want, scrolling over to hit the button to make it go.
For pleasure reading, this is a great device. I'll see how my use goes when I am not using it for history research, but I envision this technology to kind of really take off if publishers realize they can make books cheaper than 8 bucks and relax about the darn text-to-speech nonsense (and most are). What will continue to be interesting is the DRM and the EULA that is getting them into some trouble. Until the 1984/Animal Farm fiasco, I was not so sure how the public would react to it. Afterwards, it seems like to me that unless something dramatic happens, I think the DRM will be transparent for most users (ie, not noticeable or a concern).
It's so tempting to sign up for a bunch of publications that one would not previously consider, due to the ease of use. On the other side, controlling urges is going to be possibly more difficult, and your wallet may suffer.