I recently got a Kindle 2. The hardware is great, the free wireless is cool.
But I will never ever purchase a $9 (or so) DRM controlled e-book. That is ridiculous. For $0.20 I might. Anything more is theft and I'd rather get the paper version.
However, there is a lot of free stuff to be found sites gutenberg.org, scientific articles, philosphical texts, etc. Basically all the stuff that glues you the computer screen to read it. Now I just read all whenever/whereever I want on the Kindle.
The Kindle will read .mobi files directly, and you can convert PDF and HTML to a format that works on the Kindle for free (but you need an Amazon account to do the conversion, and I do not know whether the result of the conversion is DRM crippled or not).