More importantly, the Kindle and similar devices made by Sony and others represent only one side of the evolving e-reader market. They are for aficionados, since paying $359 for a device makes sense only if you read quite a lot of books, newspapers or magazines on it.
I recently purchased the new version of the Sony Reader from London. It sold for about 200 pounds ($285). I have been using the first version of the Sony reader, and the new version got even better. It has the same functionality but got even slicker. In my old Sony Reader the page number did not match the paper book version. This was amended in the new Reader among other improvements.
You buy books the same way through the Sony store (similar to the concept of Apple's itunes) which you have to install on you PC. Or if you are in the UK through Waterstones.com. After downloading books to you PC they are transferred to you Reader using a supplied cable. I noticed in Sony's US site there is a touch screen version of the Reader with built in light that sells for $399.
Kindle 2 which is just revealed has the advantage of working wirelessly but only in the US at this point. You purchase books directly from Amazon. The complaint on the previous version of the Kindle was that it was clunky. This seems to be improved in the new version. It has a key pad which Sony does not have to write notes and other features. It sells for $359.
If I were in the US I might have considered the Kindle 2. But I prefer the Sony. The Kindle 2 probably has more bells and whistles but I prefer the touch and feel of Sony Reader. For both you need US or UK credit card and billing address in order to purchase books.