Amazon Kindle: the future or just another pricey gadget?

A friend sent an email about the new Amazon Kindle.  At first I was highly cynical.  It was ugly and who wants to read books on a ugly expensive handheld device?  But in checking it out further, I have to admit I was intrigued. 
Not so much for the books aspect as for the newspaper, magazine, and blog part. 

I love the feel and look of books and I am not sure I want to give that up just yet.  But I hate the clutter and mess of newspaper and magazines.  I mostly subscribe to online versions.  The Kindle seems like a great way to read these periodicals wherever and whenever I want.  The fact that you don’t have to pay for wireless access makes a big difference too.  No service to acquire or pay for makes it simple.

The idea of reading books on a reader is growing on me a bit.  I would need to see how comfortable I feel reading for long periods using the Kindle.  But if you could read comfortably without any more eye strain than with paper, it would be a lot easier than carrying around a bunch of books on trips, etc.

The other aspect is the interactive part.  It would be awesome if you could take notes or highlights things as you went along.

I am not sure I am ready to spend $400 right now, but I am more tempted than I have every been.

What about you?  Tempted or no?  If it was cheaper would you be interested?  Also, ugly or just basic?

More thoughts on the idea of an electronic book reader when I get more time.

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