I agree that the games can be a distraction, and there are times when I do read less because they are on my Kindle. I prefer to read in larger blocks (not just a few pages at a time), so the games are nice when I have only a few minutes.
My Kindle is the only electronic game-playing device I own (other than a desktop computer). If I had a tablet, I'd have the games there and keep the Kindle "pure" with books only.