I'm not sure about that. It's not an e-reader of the traditional Kindle range that has the electronic ink technology, it's a proper LCD screen and has all the drawbacks that other tablet devices have for reading, essentially a jack of all trades and second best to the iPad, it's only competitive point is its price.
There is also the Kindle Fire, just launched. Kind of a halfway house between an e-reader/media player and a tablet.
I've always preferred specialist devices, such as the Kindle e-reader thingy, to things that do lots of things well but nothing exceptionally. I can take my Kindle on holiday with me, read it in direct sunlight and the battery charge will do me a month if I push it, try that with any LCD tablet and you'll be disappointed.