I bought my iLiad about a year ago, but even if the Kindle had been available, I'd have gotten an iLiad, because I use the stylus heavily while reading journal articles for grad school or taking notes in class. If all I wanted to do was read books, I might have stuck with my trusty eBookwise 1150 (which I still kind of miss because the backlighting was so convenient for reading at night without keeping my husband awake, and I haven't found a booklight that works as well on the iLiad).
But different people have different needs. I think it's good that there are different devices with different functions.