The Kindle 2 is out.
I have to say, it definitely intrigues me... But, for now, I think it is more of a toy fantasy than a useful tool.
I use the library a ton, and buy what books I can used. The books I generally buy new are knitting or other craft books (as references), and then I like being able to copy them for take-along projects or write on the pages, etc.
I could see it being useful for someone like Daniel, who tends to buy a lot of new books and read them once before moving on.
To make it useful for someone like me, I would love a feature such as some sort of subscription fee you would pay to your local library system. I would gladly give Seattle Public Library $X / month to support them and have access to books on the e-book device... I guess that is somewhat the same model that the Microsoft Zune supports; you pay a subscription rate to listen to a bunch of music and get to keep a set number of songs per month, or you could pay for additional ones, etc.