i have the kindle dx (big one). i love it. i love the small one. great products. highly recommended. but, they aren't for everyone. if you aren't a big reader (a book or two a month) then you probably won't get much benefit out of it. i'd seriously consider reading on an ipad or ipod.
if you are a big reader, especially if you read a book or two a day, then the kindle may just change your life
be warned about one thing, though. amazon has a very spotty record about updates. i have had the dx for a year. still no updates. still no word if there will be updates. i have emailed repeatedly. no clear answer. i still have no page numbers (for example) while people who paid about 1/3 as much for the smaller kindle have received multiple updates. very frustrating in this respect. still a good device, but don't expect the kind of support you get from apple.
oh. i forgot to address your point about paper. i don't think the kindle is meant to completely supplant paper. taking advantage of technology they have revolutionized book publishing, book selling, and book consumption. but, there is still a market for traditional books, especially if you read specialized works. personally, i prefer the kindle and ipad over paper books, but as a researcher i'll take knowledge however i can get it! i have digitized my personal library, and scan any paper book i buy, while also spending several hours a day in the library with my old pulpy friends.
in short: there is room for both paper and digital texts in the world. but, next time you have an international flight, which one would you rather bring along? a time and place for everything
