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"surely if you're into ebooks (like I am) then you'd be better off with an actual Kindle."Unless you're into content that is more than just ebooks. [1] Or you like to be able to flip from your reading to research [2].
Don't get me wrong: I'm iffy on how large the market is for the 7" form factor myself. But even I recognize that if you're looking predominantly for reading++, it makes a strong case.
>"Staring at a backlit screen like that for hours on end can't be good for your eyes."
... you say on a forum by and for people who generally spend at least 8 hours staring at backlit screens at work and then go home to stare at them some more for their side projects, hobbies and pass-times...
[1] Instapaper, PDFs, CBRs, mixed-media presentations, research papers, etc.
[2] Browsing, reference apps, etc.