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I find that I haven't bought a lot of new books on the Kindle. I do buy 'pop' paperbacks occasionally, especially if they're much cheaper than for the hard copy versions (I don't like to pay more than $4 for a Kindle 'paperback'). I tend to buy bestsellers after they've been out for a while.
I have bought a couple of expensive technical books on the Kindle, but I've found that I'd rather have a hardcopy. Just about all of my professional and technical library is in hardcopy. The problem with having this on a Kindle is that I can't lend it out, or have two books open at the same time easily and go back and forth between them.
I find that the Kindle has opened up the classics for me. I've downloaded a LOT of public-domain books off of this site (mobileread), as well as from other sites. I've also used my local library to download DRM'd .MOBI ebooks that I read on my Kindle after conversion (I honor the time limits on these and delete them when I'm done... these are usually trade 'paperbacks'). And, I've converted several technical websites to ebooks, and put them on my Kindle for reference.
IMO, for this device to get widespread adoption, Amazon is going to have to update the software so the device is easily usable beyond the Kindle galaxy. Knowledgeable users can already do this... but the Kindle user base has to be much larger than knowledgeable early adopters for the product to start achieving critical mass.
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