I got a Kindle about a month ago but have since returned it. It seems to be an excellent device for reading any book that should be read serially (e.g. novels), but any type of book that requires "random access" (e.g. reference/technical) doesn't work well due to the small screen, inability to jump to page X (which makes it difficult to use an index since you can't easily jump to it from anywhere), and poor search functionality.
Even if these features were implemented better, it would probably still be annoying as Kindles are sluggish, low-power devices (which is probably a boon for the serial-reading use case as it encourages you to just flip pages and not get sidetracked, as well as providing amazing battery life).
Then again, maybe I'm just missing something as my coworker seems fine using his Kindle for this purpose.