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Got a Kindle for my fiancee for Christmas and she loves it! I was amazed with the screen (it looks like those fake display screens--but its real!) It is amazingly easy too to get and download books to the device. A great purchase!
 
I got a wifi Kindle for my wife last summer and got her a leather case and LED reading light for Christmas. She loves it and uses it all the time. The Kindle is an excellent value. I have an iPad and can read Kindle books on my iPad. She and I are on separate Amazon accounts and I haven't figured out how to loan books to each other yet, though I think that feature would work if we both had Kindles. That would be really nice, to be able to buy a book once but each of us could read it on our own device.

She uses her Kindle almost exclusively for reading and only has one game right now. I think it's a minesweeper game.
 
I got a Kindle 3 for Christmas and I love it. Also got the lighted cover and I was a little worried about that because it weighs the same as the Kindle so together it would be around 1.1 pounds but the added thickness seems to make it easier to hold for long periods, much easier than iPad. Plus having a light available all the time is nice as well.

The battery life is amazing, it is nice not having to worry about charging it for over 2 weeks with Wifi on intermittently and using the light at night.
 
It is probably the finest digital reading experience you can get at this time. The iPad is nice too, but it would be nicer for reading with a 'Retina Display', and there are going to be plenty of times where the more paper-like display on the Kindle is just more enjoyable (e.g. in the sunlight).

I would choose the iPad without a second thought if deciding between the two, or do as most do and own both, but if reading was my sole concern, it would be the Kindle.

Edit: and I'd choose the Kindle over all other E Ink devices for numerous reasons.
 
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