I've had my Kindle 3 for about four months now. Love it. I have it to admit that it was an impulsive buy (read the first 100 or so reviews on Amazon and HAD to have it); however I'm really pleased that I did. It's re-sparked my interest in reading.
I see quite a few potential customers saying that the reading of a book, with real pages, smells, texture etc etc; they feel that reading a book is an experience in itself and they assume the Kindle will take this away from them. Personally, I say "Hogwash!" to all of the above. If anything, the feel of the pages; the uncomfortable weight of them; and the odd positioning that one has to put oneself in to read books in bed were negatives which kept me from reading. I hated that pages had coffee stains on them, and I cringed at the texture of the pages on my fingertips as I turned them over. Also the inconvenience of altering your grip of the book to turn the pages was enough of an annoyance to find reading a drag.
With the Kindle, I just find reading so much cleaner. I've actually read more recreationally in the last 4 months than I have in the last three/four years (since the last HP book no less!). I have always enjoyed literature (A* English student) so I wouldn't put it down to inability to read or incomprehension. I genuinely found the primitive motions of reading enough of a deal breaker to not read. However pedantic as that sounds, the Kindle eradicated all the nuances of reading and, as already said, re-sparked my interest in reading.
I bought the Kindle 3G with the lighted Kindle-designed cover. The built-in light is invaluable, as I read mostly at night and it's just such a nice feeling knowing that I don't have to remember to bring a clip on light everywhere I go. Also, the leather cover is really well made and just makes the whole experience that much more enjoyable (also it rectifies the peculiar center of gravity that the Kindle has by itself).
Essentially the Kindle is a £200 (£150 device + £50 cover) book. Which, when put that way it sounds pretty ridiculous. However, for all the reasons stated above and many many more, I love my Kindle, and I'm thourghly glad that I worked for ~50 hours (student's wages!) to afford it.