Considering that kindle customers do not own the books they buy, Amazon's kindle will be Free as free first dose of cocaine.
I buy books for a few hours of enjoyment. After I've read them, they just sit on a shelf and collect dust. Because most people are like this, the Kindle is not a poor value proposition. Even if you were only allowed to read the book exactly once, it would still be a better value (in terms of hours of time spent per dollar spent) than many things, like seeing a movie.
Everyone hates DRM, but everyone knows that DRM only lasts a few years for a given industry. Eventually the publishers realize that DRM is being used to lock them into a distributor, and they hate that more than "piracy". It happened with music, and it's starting to happen to books.
When people start getting arrested for sharing books with their lovers, then you can link to "The Right To Read" and say "I told you so". In the mean time, consider DRM as a bootstrap that will eventually go away.
Fixed that for you.
As an avid library goer, I'm tempted by the Kindle, but I don't actually want one. I get 95% of my books from the library, so for people like me, a Kindle is just a way to spend money more easily and more often.
That's not even close to true. The actual case is just that the costs of library books are (almost) completely externalized.