I'm wishing for one of these, but I know DH won't go for it right away. I'm also wanting an iPhone, but these are things that I'm just putting on my wish list and will wait for. For now, I'm sticking with free library books too. I'm sure over time, there will be a lot more options for free library loans for the Kindle that will expire after a certain amount of time. That's when I'll be really ready to spend the $$ for a Kindle.
BTW, I recently saw a Charlie Rose interview with the head guy from Amazon and they talked about the Kindle a lot. He said part of the reason it's expensive is because there isn't any kind of service plan that goes a long with it - like an iPhone might have - and that as the technology progresses and gets cheaper, the price of the Kindle will go down as well.