Kindle 2
I have been using a Kindle 2 for a while now, the cheap WiFi only model for $138. It’s a decent reading device, in particular for the price.
Image quality is similar to a paperback, with decent contrast, but not overwhelmingly good. Of course, it’s not backlit, so if you’re reading at night, you’ll need a reading light. Refresh is fast enough for fiction reading, but too slow for flipping through reference books. WiFi connectivity is good, although you can’t easily do fancy WiFi configuration with the limited user interface. Its 2G flash memory is stingy but holds a decent number of books; a Micro SD slot would have been nice.
The biggest issue is battery life. When everything goes well, battery life is spectacular. But frequently, the Kindle will discharge by itself within a day or two for no apparent reason. It quickly recharges again, but it is kind of a nuisance.
I usually read books on my Galaxy Tab now; it’s about the same size, far more flexible, and has a much nicer screen. I use the Kindle as a second device linked to the German Kindle books store now; it’s good for that purpose, because most of the German books I read are pre-20th century German literature anyway. Most of those books are free, mostly due to the efforts of volunteers who typed them in (no thanks to the German publishers). 20th century German literature is largely unavailable on Amazon at any price because German publishers are greedy stick-in-the-muds.