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I went from the Kindle 3 to the PW2, and I'd highly recommend the upgrade. Battery life isn't quite as good as already mentioned (I rarely have my light above 10 and usually it's off or below 4), but the improved screen with the light makes up for that.
Some people have mentioned they feel a little 'looking through a glass window' effect, but it's fairly minimal and even if you notice that effect (plenty don't), I think your eyes soon get used to it. After a month owning my PW, I much prefer reading on it and wouldn't go back to the K3.
As for Amazon being "even more intrusive". I wouldn't say its intrusive, just can be an irritating nag. You'll get warnings to tell you books won't be synced to the cloud collection unless you turn on wi-fi and sync... if stuff like that will really bug you, you can look at jailbreaking to download to the original firmware, or consider using Calibre plugboards to improve the way your book titles are listed on your Kindle and don't even bother with collections.
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