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I bought my Kindle about 3 months ago, (33 days before the price dropped). I wasn't bent out of shape about the price drop, because I decided that having the Kindle for that extra 33 days was worth the 40$ to me.
I am not normally prone to splash out large quantities of money on frivolities. But I'm glad I bought my Kindle when I did. If Kindle II is really so much greater than Kindle I (and I admit the thought of an 8 1/2 by 11 screen makes me salivate--but only if it can display / annotate / search PDFs) I'll save up until I can afford to make the switch. But it doesn't make Kindle I any less useful to me right now.
YMMV
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