I just got mine in the mail and boy is it it worth it.  It really does have the appearance of a book and even feel of one if you get a leather case. 

 

Its internet is junk and text to speech a joke, but who cares.  This is probably the best gift I've ever gotten.

 

I've been using the Kindle App on the iPhone and love it for the convenience.  I am reading novels faster because I can pick it up anywhere and read a few pages; finished a 500 page novel in one and a half weeks this way.

Oh, I've got about 1500+ books on my iphone and I've been reading on it since early '08.  I'm usually hitting 2 books a week or so unless I'm really busy.  I figure with the Kindle, I'll go even faster even though I won't have it everywhere I go. 

 

Personally, I prefer the stanza app.