My wife still uses a Kindle 3 (keyboard), and every time I put a book on it I'm impressed by how well it still stands up to modern readers. The screen is extremely crisp, great contrast, and in some ways looks better than modern screens with all of the touch and light layers above the text. I don't find the lower resolution to be a problem at all, especially given the heavier font that it uses.
That said, I have to say that the spillover from her lighted case is a bit annoying when my screen is a nice orange shade and lit just enough to read the text.
