Both versions of the iPhone 3G (8GB for $199, 16GB for $299) cost less than the $359 Amazon Kindle 2. With the release of the free Amazon App for iPhone, you can essentially get the same functionality for less money. Mobile 1-Click can be used to make quick and easy purchases on Amazon, and they all go through the same secure servers just as they would on the full version of the site. In addition to Amazon.com's huge selection, you can access more than 9000 other merhants. There are currently over 240,000 e-books available! The app works with the iPod Touch as well. Check it out by installing right from the AppStore. Personally, as small and thin as the Kindle 2 is, I think I'd rather carry around the iPhone.
More info here, and here
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