Looks good so far.
Both the iPad and Fire will have their own places in the market. As of right now, I do not see one or the other stealing market share from each other.
The Fire seems like it will attract people who are mainly readers and content consumers. I do not think it will be strong in the areas of content creation and productivity. That being said, most people will settle for a decent tablet when it comes to the $200 price tag. I am happy because a well assembled tablet (let's remember that the Kindle does meet Apple's standards for battery life, so if anyone could actually make a decent tablet, amazon would be my first pick) that will destroy many of the other android tablets out there. Amazon has the online services - a music store, online storage, and movie rentals.
Keep in mind that this could be much better than anything the Xoom or another droid tablet could really offer. So, Fire seems like it will kill droid tablet sales.
Where the iPad comes in is it's an advanced high end tablet made for both content creation and consumption. In short, it's a device that can cut all your cables - once iOS 5 and iCloud are up and running, you won't even need a computer to get started on one of these devices. at $499, the iPad matches the price of some of the most basic computers you can buy. It's literally apple's entry into the sub $1000 computer market. the iPad is a touch based computer.
So, the Kindle Fire will be a device to consume content, somewhat of the magazine role.
People who don't want to give up their computers could easily buy a Kindle just for content consumption - because they wouldn't need an iPad until they decided to get rid of their computer. People with a Kindle Fire may "upgrade" themselves to an iPad. However, I do not see any reason for an iPad user to buy a Kindle Fire. Thus, Apple will stay on top, droid shall be slain, and Fire could still be successful.
Now, all that remains to be seen is what the fire's full list of features is, and how well amazon incorporated them into the device.