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I originally bought one for someone as a gift, and after seeing it in action quickly decided I wanted one of my own, so I've just went through the same decision.
I figured that possible upgrades like a touch screen, the ability to scribble notes on it, and slightly smaller size weren't really important to me personally. So would it really be worth waiting to see if things like the screen, battery life, storage, book management etc will be improved? The current version seems pretty good in those aspects anyway, so perhaps not. The cost might go down, I don't know, were Kindle 2's available cheaper before the Kindle 3 launched? Besides, if you wait to see if the price goes down, the more likely you are to just wait for the new one to be launched and you may well end up paying more!
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