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I'm waiting to see what happens. If Amazon is happy with its present level of Kindle sales--i.e. selling to people who read a lot (who are more likely to read for long periods and thus want e-ink), I imagine they'll keep on making Kindles.
On the other hand, I already do some of my reading on my iPod Touch--because it fits in my jeans pocket so I always have it with me. Form factor does matter, even for a Kindle user like me. But I can't read on it for very long; my eyes get tired. This is not usually a problem in a waiting room or a checkout line, and it is an active bonus when reading in bed; when my eyes get tired it's time to go to sleep. However I don't think I would want to do the majority of my reading on it.
If iPads (or some non-Apple equivalent) turn out to be the book-container of choice in the long term and squeeze out dedicated readers, I guess I'll buy up a couple of used kindles and tuck them away in the closet for replacements when my kindle dies.
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