Yes, I'm gadget crazy, and Yes, I'm an avid reader. I bought Kindle 1 when it first came out, it cost $399 but I've saved $900 in about 14 months, so I'd say that was a good deal.
The biggest disadvantage of Kindle 1 was that my kids couldn't read the books I bought, because I wouldn't let go of my Kindle.
I love the Kindle for traveling - it saves so much weight - and I always carry it with me. The new one holds 1500 books instead of 200 and the downloads are taking about 7 seconds.The new one is thinner and lighter, and has other improvements as well.
The really neat thing is that I can have all of my books (or some of them) on BOTH of my Kindles, so now I can use the new one and my kids can read the books on the old one.
If you read a lot - or if you want to give a gift to someone who reads a lot - go to amazon and buy the latest and greatest Kindle for $359.