yes, games are fine.
They made some archive changes, to keep large libraries from either being "chopped off" (only display oldest XX titles) or bricking the device (as happens on the touch). Now, every time you access apps or books, it reloads the archive list (newest first). Great in theory, horrid in practice.
Stay out on the carousel and it works fine.
I don't know why the Silk browser it acting up on mine, but I loaded Dolphin (and flash) and it works fine, other than in gmail (which simply hates android web browsers, it seems, at least the Kindle versions - click a msg and it displays something else entirely). The built in email is ok, but has limited search capabilities.
Skype works great (talked to brother, who is in Indonesia right now, no real delay lag, even with my very slow DSL).
Also have Aldiko on it, so can read drm'd epubs/pdf (should work for B&N titles, too, but haven't tried on this hardware; worked fine on old Fire). I use it as the default for all PDF's.
Haven't played with freetime much - looks to be a royal pain to administer from the device and only tolerable from the web interface (requires you to set things up one book and one app at a time in the MYK page, which is still better than attempting to do so from the device).