The Kindle is too expensive for me, although I have to say I do like the way it looks. How can you lose--book and cool gadgety-thing in one! Now, when they fix it so it makes coffee too...
I read ebooks, using Mobipocket, on a little handheld PDA (Jornada 545, £35 from Ebay). The thing I love best about it is, as someone else said, the fact that it's backlit so you can read in bed without disturbing your partner. I have shelves full of print books, but for preference, now, I choose to read ebooks in bed.
I also love that, with ebooks, it's instant gratification. I've sometimes felt like a new book to read at 11 o'clock at night, so I've logged onto Fictionwise or the Mobipocket site, or an epublisher, bought a book, paid for it with Paypal, downloaded it--and voila, a new book to read right that minute!
I won't ever stop reading print books, but I really enjoy having the option of either. I bought a Jennifer Crusie ebook recently, just because I wanted to read it right then.
As a writer of short stories, too, I appreciate the market that ebooks give me. It's hard to get short stories published, aside from magazine markets (which only have a certain number of slots each issue). With epublishers, I can have a short story published, given its own cover, and it sells for about a pound. And distribution is no problem. Well, so long as people have net access, that is.