I have the Kindle 1. K2 is about the same, really. A couple of improvements, but mostly same same.
It's got "E-Ink" technology that lets you read anywhere there's light. Even bright sun. No backlight. Easy on the eyes, and you can change the print size in 6 adjustments.
New books cost $9.99. Older ones, less. Classics that are out of copyright can be had for free.
I read a lot on it. For instance, I bought
Kill Bin Laden, a soldier's view of the battle of Tora Bora. Interesting, but I wanted to know more. I finished the book and bought
First In, a CIA officer's version with lots more cultural stuff. And when I finished that, I read 3 more books on Afghanistan. Because I could get them right away. The books download in about a minute.
$350 ain't cheap, and a lot of people just like the feel and smell of real books. I like both. Kindle is not good for books with pictures, which print out on a hazy gray scale. You wouldn't want a cookbook with illustrations of techniques, a map-heavy book, a book on fine arts: all those you should have in "real" book format.
Nice features are bookmarking, highlighting, and near instant dictionary lookup. Also a search function you can use with the little keyboard.
I have one because some NY editors have them and like you to email your manuscripts to them, so they don't have to drag home a whole lot of paper every day.
All in all, I like it a lot.
See GDG for a dissenting opinion:
viewtopic.php?f=4&t=200269&hilit=Kindle