Yes - the iPad will be very pretty and will have animated page flips and a more "robust" experience for reading books. Especially for the academic world. Being in color and having a touch interface will be great for books will illustrations, charts, etc..
However - those that think the iPad is going to kill the Kindle are mistaken. Perhaps the DX will go away. But the standard Kindle? No. At least not for several SEVERAL years. Here are some reasons off the top of my head
1) Amazon's customer base is HUGE. They have great prices, inventory for ebooks, a head start on the market. They also have CHANGED their profit model to better compensate publishers.
2) The Kindle, for what it is, might be a bit pricey at 249, but those that really just want an ereader are more likely to pay that than 499 or up. Yes - the iPad can do a lot more. But for many people (see #2) - there's no need for it to do more.
3) e-ink - no matter how you slice it, is better on the eyes for reading text. There's little to no argument here. Downside is you need light to read it in the dark. But the upside is - you don't have to worry about glare and sunlight washing out your screen like an LED screen.
4) Amazon WILL be updating the Kindle hardware and software. Given that a few companies are already promoting color e-ink, the Kindle will no doubt evolve to a full blown color e-ink reader. Will it play videos, have touch screens, etc - doubt it.
5) Battery life. Say what you want - but yes, when someone travels or whatever - being able to read for a couple of weeks without recharging is important. 10 hour battery life s GREAT for a video device. But if the same device allowed you to watch videos for 2 weeks, you'd call that a major asset. Those saying that 10 hours is plenty for an ereader can't have the argument go both ways. The fact is - Kindlem because it's ONLY an ereader excels in battery life.
6) Total cost of ownership. Apple has already stated that they leave book prices to the publishers. Great for them. But for the reader? Also - 3G access is free with the Kindle. Users don't have to pay 14.99 a month to download a book when away from a hotspot. And I think that Amazon will most likely (if only to compete with Nook let alone the iPad) add wifi to their device. For those looking for an e-reader (only) - it's not very cost effective. A beautiful device perhaps, but a bit pricey.
7) Durability. Now - no one has used an iPad yet.. and I'm not saying the Kindle is made of steel. But given the posting on here about screens getting cracked, cases getting scratched, and other technical/manufacture issues - I would be surprised if the iPad was ever considered more durable. It will most likely have to be much more "babied" than a Kindle would overall.
I'm not a Kindle lover or an Apple Basher. But just wanted to throw it out there that I think anyone ringing the death knell for the Kindle is WAY premature. WAY premature.