I am a great fan of the Kindle.
Battery life is measured in weeks, not hours. A backlit device cannot compete.
Weight and ease of holding are major benefits. Making the eReader larger (like the Kindle DX) negates these advantages.
Availability of tens of thousands of free books (classics) is great! Can't tell you how many classics I read since getting the Kindle.
Kindle is completely useless for technical reading. I would strongly discourage anyone thinking of a Kindle or other eReader for use with textbooks. Schools buying eReaders to replace textbooks will find they've wasted their money.
Thinking you'll surf the web with it is unrealistic.
Advances in eInk may mitigate these limitations, but they're limitations now for sure.