I have the WiFi only and rarely use that feature. I plan on giving it away next month so I can get the new KSO. At $114 minus the deals I'm definitely going to take advantage of, it'll end up being free with an extra $26 in my pocket.
I'll take a free ad-supported Kindle any day. Besides, these ads will only appear as screensavers (I rarely pay attention to them anyway) and on the bottom of the home page (I spend very little time there also). So, they won't be a distraction. Of course, I'll seek them out to see what additional deals I can get.
I plan on getting 2 or 3 of them.