I'm really not the best person to ask about that, since the Kindle isn't available to buy outside the US. Its wireless download system certainly seems very innovative, and the ability to buy books so painlessly is obviously a "plus" too. I think the Gen3 is a much more physically attractive reader, but I haven't seen a Kindle "in the flesh" and often pictures don't really give you the true impression of what a device is like.
Yes, the Kindle looks like a very nice machine indeed. Were I able to buy one, I'd probably do so. Would I buy a Kindle instead of a Gen3? No, I personally wouldn't; I'd buy both, but I'm a gadget freak