The price drop was enough for me to get a second Kindle 2 for my wife instead of settling for a Sony 505 because of price. I am willing to pay a little more for the added convenience of sharing downloaded books from Amazon with my wife. The kindle is a good fit for her because she already has a friend who recently got one (also because of price drop), and she enjoys the ease of use.
Now all I have to worry about is HOW MANY books we end up buying.