I bought a Kindle about a year ago. Then, later, I bought the Kindle DX. I have a large library in my home, but the Kindles are getting more use than the paper books: (1) the Kindle is easier to read, because I can adjust the type size to my liking, and the Kindle is typically lighter than a physical book, (2) the Kindle remembers where I left off in a book and takes me there when I return, which is useful when you read a dozen books at the same time. The Kindles automatically synchronize themselves so that I am am able to pick up one and start where I left off on the other. (3) The Kindle will hold about 1500 books at the same time, so you can carry a substantial collection with you as conveniently as you might carry one small paperback. (4) I can buy an eBook on the Kindle practically anywhere. For instance, I was reading a NYT book review and liked what I read. I pulled out the Kindle, ordered the book, and in 30 seconds it was in my Kindle waiting to be read. I could go on, but those are the Kindle's main attractions.
On the con side, the Kindle is B&W, and pictures come out so poorly as to be unusable. Reading an art history book on the Kindle, for example, would be pointless. This is why when the iTablet comes out, I'll buy one at once. I am very impressed with the way Amazon has organized the Kindle, and I hope that one day soon there will be a color Kindle comparable to the iTablet.