I don't want a Swiss Army knife eReader: I want a dedicated eReader of the right size, which (very important) disappears when I read --just like a book disappears. I wouldn't read a paper book if it were the size of a phone.
When I'm reading and I'm involved, the most I want to do is a quick look up in a dictionary or encyclopedia (both of which Kindle provides). I don't want to do much else: Not check my email, not get a phone call, not watch a video, not play games, not SMS, not a thing.
The one time cost of $359 is nothing. Just like a phone, the HW cost is nothing compared to the recurring service costs. I feel fine paying authors for good writing. The DRM issue will work itself out over time. Plus there are free eBooks available too.
I love the idea of saving my precious shelf space for books that need to be on paper.
The difference is now everyone can register an active account. Before all you could do was give them your email so they could tell you when it would be available.
FYI: Like many Google services, Writely is still in beta even now.
The first rule of intelligent tinkering is to save all the parts. -- Paul Erlich