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Whispernet is what really sets the Kindle apart from the other reader devices. (And what justifies the keyboard.) If they launch in Europe without wireless support, it has no differences from, say, the Sony Reader or Cybook.
Launching in Europe with only one country supported might cause legislative problems with the EU -- I don't know but the free trade across borders may be a stumbling block. And the cost of delivering across countries could be too high for Amazon to swallow.
Also, I seem to remember Apple ran into problems in France over the iPod and iTunes -- I can't remember what the outcome was, but there could be a related issue. (Though I guess since the Sony is launching/launched in France this is not really an issue today.)
Also, it sounds like Amazon are only just keeping up with the US demand for the kindle; opening a "second front" in Europe would probably cause supply problems which would annoy more people and loose goodwill.
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