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Before the Kindle Fire came along, Kindles were e-ink devices designed to be one thing: eReaders.
The Kindle Fire (and Nook Color, etc.) add color but reduce resolution. For reading texts, this means they are less capable for eReading. However, the Kindle Fire et al. were marketed for listening to music, watching movies, and running apps--things earlier eReaders did not do (or if they did do them, e.g. games or MP3's, they were not featured).
I'm one who tends to think of the Kindle Fire and Nook Color not as eReaders but as media consumption devices or small tablet PCs.
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