Depends on what you call cheap, I hardly call the Kindle cheap. Don't get me wrong its a great product for the price you are paying for it but its hardly cheap. My reader is the Aluratek Libra Pro and costs $100. This is what I am defining as cheap, but lets look at what you are getting for the extra dollars in the kindle:
1) Personalization - you can enter your name in your Kindle, I can't
2) Search - Kindle has a search function, I don't
3) Dictionary - you have one I don't
4) Notes - You can take notes, I can't
5) Keyboard - You have one, I don't
In my opinion the Kindle is a better reader but the Libra Pro costs less. Sort of you get what you pay for. The Libra Pro sells at borders.com for the price I quotes.