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You can read pdfs on your Kindle. At least, I've been doing it on mine.
It is a bit slower than mobi, and in my opinion not as nice (at the moment you can't search or highlight or annotate or use dictionary lookup in pdfs and I miss it) but it works. Mobi is definitely nicer, but pdf works, even if my Kindle feels kind of lobotomized without the other functions.
FWIW I often turn my K2 to landscape view so it displays half a page at a time. That solves the "you need little teeny eyes for reading little teeny print" problem nicely.
And supposedly the Kindle 3 will allow within-pdf search (but not searching across many pdfs) plus highlighting, annotation and dictionary lookup in pdfs. If it just allowed cross-pdf search I'd be waiting at my doorstep for a new kindle :-)
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