I bought the $79 Kindle the first day it was available. It's my first Kindle.
I have an iPad, and I never felt like the Kindles were worth the money for the marginal additional benefit over an iPad. But for $79, who cares. I use it before bed and to carry around when I'd be worried about the iPad
I was on a plane and got a headache while reading on the iPad - the screen glare is unbearable - I could see the reflection of the above light-source and my ugly face. And the device itself is a lot heavier than a Kindle, so you also get tired from holding it.
After 2 hours of struggling I took out my netbook, which at least can sit in my lap.
I have an iPad, and I never felt like the Kindles were worth the money for the marginal additional benefit over an iPad. But for $79, who cares. I use it before bed and to carry around when I'd be worried about the iPad