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I've never bothered to use the internet on the kindle, I have computers for that. It's really mostly for reading, don't think of it as an iPad-lite.
It's got a keyboard, but I wouldn't say it's nifty. I wouldn't trying writing anything more than a few words on it, but then again, I don't text on phones, either.
You can take notes on books, but you can't make your own text document from scratch. (At least not yet, there is an app store in the works and I would think a text editor would be an app in that).
Calbre converts epub and RTF to Amazon's format pretty well.
There's a status bar on the top when you first start reading a book, but it disappears after the first page (at least on a K3, apparently in K2 and below it stays). There is a small bar on the bottom indicating progress through your book.
It just shows books as a big list, unless you put them into collections (which are sort of like folders, but not actual folders). Then they are hidden in those collections (they can be in multiple collections).
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