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I find the web browsing on the Kindle to be pretty iffy, myself. It's great for getting content and the occasional Wikipedia or Google search. I think it really depends on the site you're trying to navigate. Some sites are painful and others work quite well. Sites designed with mobile access in mind are usually a lot better.
If I think of the Kindle and the Iliad on a spectrum between reading device and tablet PC, Kindle is more on the reader end than the Iliad. As a reader, the Whispernet adds a lot to the experience. If you think of it like a tablet PC, you will be disappointed. If I wanted to look at websites all the time and needed e-ink, I'd go with the Iliad or find a way to grab the content I wanted and convert it (which would probably be easier on the battery anyway).
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