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The limitedness to the browser is that - for obvious, e-ink reasons- only text-based sites are accessible on it. There's no flash, basic java. But other than that, there are no limits; websites will load and leave what it can't handle blank, and all mobile versions of websites work wonderfully on the Kindle.
Using the web browser is absolutely free, you are not charged anything for using it. The place where people usually get confused is with Amazon's document conversion service. There are two ways to convert a document to kindle format using Amazon- you can send them the file and they'll email it directly to your kindle (which will cost about 10 cents or more depending on the file size) or they'll convert the document and email it to your email address. From there you would move the Document to your Kindle yourself, via USB, at no charge, of course.
I belive when Amazon wrote, "
You *may* be charged a fee for wireless connectivity for your use of other wireless services on your Device, such as Web browsing and downloading of personal files, should you elect to use those services. We will maintain a list of current fees for such services in the Kindle Store. " That they were just leaving a venue open in the future were it ever the case that they would need to begin charging people for the use of the web browser.
Right now, as it has been since (at least) the Kindle 2's advent, the 3g Web Browser is free and (unlimited).
Hope this helped!
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