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Interesting discussion. I have both a Kindle and an iPad. I think if you're limited to buying one device, you have to think about what you want to do with it. I think the iPad is a great media consumption device - video, music, podcast, etc. Also, it's great for news apps, games.
I tried using it for ebook reading, but wasn't very happy with it. For just straight reading, I prefer my Kindle. The weight of it is ideal, the lack of glare means my eyes don't get tired. Add in that it's also far better on battery usage.
I still really enjoy my iPad - I just read with the Kindle.
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