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Different people's takes on what is a reasonable price for an e-book are going to be different. Me, I liked the "(hardback) bestsellers for 10$, trade paperback for a couple of dollars below the paperback price" model that prevailed before the great Conspiracy In Restraint Of Trade Five pushed their idea of fair prices through. But I never expected books to be just a dollar or two.
But anyway, any e-book reader will let you read Mobileread or Manybooks public domain books, which are free (be a little careful in the Kindle store; some people will try to sell you these books for actual money, so check to see if they're available elsewhere for free first.) You don't need a Kindle in particular (though I love mine.)
The Amazon store often has in-copyright books available for free or very low prices to drum up interest, but it's kind of up to chance whether something you want will be available for free *and* you will learn about it in time, so whether that adds value will depend on what you like to read and how much time you are willing to put into finding bargains.
I just got a free book on recent advances in neuro-imaging which I'm really glad to have, though.
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