So we have a Kindle in our office. I have now played with...the future.
Physically, I like the Kindle. The size and weight feel right. The gray colors of the text and screen are indeed crisp and clear.
The pretty screen begs to be touched, like an iPhone. Touching the screen, of course, does nothing on a Kindle. Instead there's a dodgy little "joystick." It was the source of much frustration.
Attempting to search the internet was pointless. When I tried to use Wikipedia, the dodgy little joystick kept switching the language to Dutch instead of entering my word choice ("Kindle"--original, no?).
We downloaded a free book. I liked the novelty of reading it on the nice screen. If you want to use Kindle just for reading, it's probably great. I'm a little dubious of its other capabilities, and have to imagine it will improve soon.
Of course, you could always just get the Kindle for iPhone app and be able to read as well as take photos, search the internet, get directions...