Okay, so it's six months down the track - how is the Kindle now you ask? Fantastic. It's now got to the point that I actively avoid paper type books.
It's small enough to carry almost everywhere, the battery is essentially unlimited (I have had it run out of power once, mainly because I forgot to charge it for about a month). It has effectively unlimited capacity (I think mine has around 200 books in it at the moment, using ~10% of its memory). It's pleasant to read and has boosted my reading speed a bit (I'm not sure why, though).
Downsides: it's no good for stuff you need to flip through (gaming pdfs, reference books, that sort of thing), and on the paperback sized model you might as well just not bother with pdfs (my phone is better).
If you are sitting on the fence, I heartily recommend getting one.