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A quick rundown:
Anything that can be read electronically (epub, mobi, lrf, rtf, even txt) is an ebook. Take a look at any random book on Project Gutenberg as an example.
The Amazon Kindle is one ebook reader out of many. Check the forums below and you'll see one for each of the major brands of ebook readers.
The Kindle uses some version of .mobi (not being a Kindle user myself, I can't tell you exactly which one).
Due to Amazon's DRM, only the Kindle and various Kindle-on-whatever apps can read that flavor of .mobi. This leaves the rest of us (about 3/4 of the ebook-reading public) out in the cold.
Therefore, a lot of people want either a non-Kindle-specific ebook format, or a DRM-free ebook format they can convert, or preferably both. DRM-free epub is generally considered the best in that case, because it can be turned into pretty much anything else.
I hope that helps some.
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