How about neither? Honestly, if you're going to go the Fire route, the Nook Tablet for $50 more is a better value, and the Nook Color for the same money is a better value. So here's my 2 cents suggestion for a "starter tablet".
You can get a refurbished Nook Color on ebay (direct from Barnes & Noble) for $129 with free shipping and 1 year warranty. The on-board OS, besides the eReader app, has a web browser, a simple but functional email app, Pandora, and access to the B&N app store for games and other apps. It also has the ability to load on pictures, music, and movies by connecting to a computer and simply dragging and dropping. The on-board memory is only 8 GB, but the Color also has a micro SD slot to add storage. That alone puts it ahead of the Fire, IMO. That's Part 1.
Part 2: If you go here:
http://rootmynookcolor.com/ you can purchase a 16 GB bootable micro SD card for $50 with Android Gingerbread pre-loaded. Turn the Nook off, turn back on and you can boot into full Android from the SD card. The Color OS is not modified so the warranty is not voided. If you choose the MIUI card you get a user interface that is designed to mimic the look and feel of the iPad. You then have full access to the Android Market and the Amazon App Store, not to mention the cool ability to download the Kindle App and read Amazon books on your B&N device!
The rootmynook card also comes with a number of apps pre-loaded: Netflix, YouTube, Zinio (for magazines), Angry Birds, Facebook, Dropbox, TV.com, Amazon App Store, Kindle, Pandora, and Google Maps, Contacts, Calendar, and Mail.
No camera or microphone, but for less than $200 including the bootable SD card, it's hard to go too wrong.