Can't comment specifically on the Kindle, but I have a Sony e reader and I don't like it much. I should add, that it was a present and not something I had particularly hankered after.
I like holding and reading a book. The e reader just hasn't the same feel. Additionally, as you lie in bed late at night, you can't flick through easily to see how many more pages there are to the end of the chapter. You can, however, increase the font size, so if you are starting to find your arms too short when reading, it is a useful trick.
The big advantage it has (and the main reason my OH thought it a good pressie) is that you can take loads of books on holiday, yet not have to pay Easyair mega bucks for excess weight.
The negatives, however, are that only one of you can read at a time ( no swapping of books with your OH), it costs as much to buy an ebook (sometimes even more) as it does to buy a 'real' book and the screen isn't that great in bright, Mediterranean type, sunshine.
The e reader probably can offer loads of other facilities (music?), but TBH I've not been taken with it enough to explore them. I should really give it another chance.