Just to give a general perspective on the situation over here in Germany: Kindle store exists but is irrelevant since German publishes aren't putting their books online. Buying US books from the Kindle store usually isn't attractive, because English language ePubs are cheaper at the UK websites. German publishers are trying to push ADEPT ePub as the format of choice, with more and more of their catalogs being offered (usually, however, at much too high prices) in that format and next to nothing in any other. Big book stores will often have a Sony Reader on display.
In spite of all that, however, most people still associate e-readers with Amazon and the Kindle. ("Is it that Amazon thing?" was the most common question when people saw me reading on my CyBook.) I guess this goes to show that the German eBook market is still pretty much non-existant at the moment. If Amazon managed to get an agreement with a local telco (eliminating the stupid AT&T roaming charges) and convince the publishers to offer their books for the Kindle at sensible price points, they could still conquer the German eBook market like Apple did with downloadable music.
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