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I've read dozens of books on my Kindle2 and now have read several on my iPad. I love both devices but the iPad is at best a backup reader for me if I don't want to carry both with me when I travel. The display is a non-issue for me - both have problems when it's dark (e-ink can't be read and an hour or so is about all my eye's can stand on the the iPad). I don't read in the dark though. I do read in the car and on the iPad the sunlight even in the car can make it hard to read.
The big difference is ergonomics. The Kindle is easy to hold and turn pages on with one or two hands. The iPad is harder to hold without accidentally turning a page if you hold it on the side or pressing the exit button on the bottom if you hold it there. That problem is excerbated by the weight of the device making it hard to hold for long periods, particularly one handed. Finally the fact that if you tilt the iPad too much it flips orientation on you makes reading in bed more problematic. All that said, the iPad is still perfectly usable, just not as easy as the Kindle.
The next biggest difference between the two is the poor performance of the Apple iBook store vs Amazon. I cannot use the Apple store without also using Amazon to get more information about the book or to use the more flexible ways to find books on Amazon. I'm sure that will change eventually. Using the Kindle app on the iPad helps but it only works for books you purchased through Amazon unless you manually convert and copy a book into iTunes for syncing to the iPad.
Sorry this is so long but I thought some might like the detail.
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