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The reason why most conventional displays (CRT, LCD, and any projection apparatus based on these technologies) can cause severe eyestrain is because they flicker, albeit very rapidly (60Hz at a minimum). In a CRT it's a function of the display technology; in an LCD it's the CCFL backlight.
My eyes are especially sensitive -- I can't stare at a computer screen for more than a couple hours at a time. That's why non-refreshing display tech like electrophoretics and cholesteric LCDs are so promising to me.
Of course an HDTV or a high-resolution computer display is going to beat out electrophoretic displays in a great many respects -- but they cause eyestrain a heck of a lot more easily than EPDs, and most people can't really lug an HDTV around with them :-P
It sounds to me like the "MAJOR FLAW" you're seeing in the Kindle is that it isn't what you want it to be and it doesn't have much application for you. In that case, do what you like and good luck.
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