A lot of what he doesn't like about it also bugs me about the Sony Reader. I have both the PRS 505 and the Kindle2. I think the UI on the PRS 505 is an ugly, geeky mess. And changing font sizes isn't quite as hard as what he showed, but it is slow and the result is often ugly. Pdfs can be read, but they are also tiny and when you reflow them they are messed up. You also have to connect to your computer.
Still I use both the 505 and the Kindle2, each has its merits. Depending on the book and format, it often looks better on one or the other. Also, each handles different DRM.
His description of the buttons on the Cooler really sounded like a problem and the interface sounds even uglier than the Sony interface.
I could live without the keyboard on the Kindle, but it is sometimes useful for finding things - like where a word occurs in a document.
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