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It was never meant to be an e-reader.
It's a multi-media tablet, with reading being one of the function it can be used for if you're so inclined.
I have no real issue sitting at PC/laptops for hours each day. So I could certainly do the 30-120 minutes of reading I do on an average day on such a screen with no issues.
I don't plan on buying the iPad as it doesn't quite do all I want from a tablet, but I'll probably get a similar device at some point down the road.
I'd keep my Kindle for leisure novel reading, and use the tablet for website reading, magazine reading, reading and marking up academic PDFs etc.--along with the video, games, e-mail, random apps etc.
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