Got a Kindle about a month ago and love it. They just dropped the price too.
Buying and downloading the books online you're limited to Amazon but the connection to their service is free. Books on it generally range from $0.00 to ~$10.00. You can also hook it up to your computer and load content onto it that way; any PDF or text document will be fine.
The biggest selling point for me with the kindle was the screen. Surprisingly easy to read on and paper-like. I was also considering an iPad to be used largely as an ebook reader and the screen on the iPad just would not work for me for this.
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