I don't own a kindle, or iTouch/iPhone, and won't buy drm'd books, so no, I've not
My mother and sister, and two cousins here in town, all massive readers, just can't get into using their itouches for reading. I've tried to get them going with Stanza and my mother did get excited about that "classics" (not sure of the name) app...but they don't enjoy reading on the small screen.
Drives me nuts, since I read everything on my ancient ebookwise device and think the iTouch screen (and the product, less it's Apple-lock-in) is quite nice.