A few days ago, a thought occurred to me: I haven't used my Kindle in quite awhile. It's not because I have already grown tired of eBooks; it's because I recently bought an iPod Touch, and find the experience to be a bit more agreeable than the the Kindle in most settings.
The text on the Touch is clear and does not tire my eyes, can be read outdoors, and is easy (and light) to keep in your pocket. I now find myself reading everywhere I go--the movies, waiting rooms, etc. One of the biggest problems I have with the Kindle is the lack of back light; this makes reading in low lit places (like movie theaters) impossible without bring a light with you. With the newest Kindle app update, the software just got better (it now rotates text and let's you have different text colors)
The Kindle is still a great device (it has better lighting and it is a bit easier to read outdoors), but the Touch has proven to be the perfect companion. The great thing about Kindle is you can have the both worlds--since Amazon stores all your books online it's incredibly easy to download your books on both devices.
If you'd like to try out eBooks, the Touch is the perfect starter device; it's pretty cheap considering how powerful it is (it runs all the iPhone apps, can surf the net, play videos (both videos you have bought and videos you want to stream from places like youtube), and view pictures). Refurbished you can get one for less than $200.