So far, the main difference I've found between the Kindle for iPhone and Android apps is that the android app supports side-loaded content and recently added in app purchasing.
The Kindle app is pretty much the only reading app I use on my Android phone. But then I only use Android reading apps when I'm away from home, so I've gotten to the point where I don't really care how feature-rich an app is. Syncing across devices and/or having a "go to" page or location feature is more important to me than the number of font choices or background colors. Font choices are nice, but I don't spend a lot of time reading on my phone, so I'd rather have an easy way to find my spot in a book so I don't have to waste time searching for my reading location. In that regard, the Kindle app works best for me.
I wouldn't use the app as a primary reader, but it works fine for on-the-go access to my books and for not having to waste time converting from one format to another. And the Kindle for Android app has been relatively error free. Unlike the Nook for Android app, which I wanted to use for reading side-loaded epubs on my phone, since its page numbering matches the page numbering on my Sony reader. But I gave up on the Nook app due to annoying server connection errors and how poorly it handles side-loaded content.
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