I read the Washington Post and the New York Times daily, and the Nation weekly and the Atlantic Monthly.... er.. monthly.
The periodical option was actually a big part in me choosing the Kindle and I've been very happy with it. There are, as mentioned, few pictures most the time but it kind of changes from issue to issue. Hopefully, in the future they will make better efforts in this regard. But that being said, I find it to be absolutely amazing and reading the papers every morning is a favorite part of my day.
I'd do the following... order a Kindle, see how you like it (because, ultimately, hands on experience is really the only way to evaluate the thing. I researched the hell out of it and until I had it in hand I had no idea regarding what kind of device I was getting) and if you don't like it, return it. Amazon has a 30 day return policy on the device.