If you don't feel like spending more than $300 on the Kindle 2, Amazon's free Kindle ebook application for the iPhone and iPod Touch may be a much more affordable, if imperfect, solution.
We compared the Kindle 2 and the Kindle application for the iPhone/iPod Touch, and came to the conclusion that the Kindle iPhone application is great for reading short passages, but the Kindle 2 is better for longer reading.
Also, you can't get subscriptions on the iPhone version and you can't buy books from within the application. Still, $359 is a lot to pay for an e-book reader (though the addition of free cellular Web access and a basic Web browser does make the cost slightly more palatable), so the Kindle for iPhone app may still be the preferable e-book reader for people who already have iPhones or iPod Touches.
For more information about the Kindle for iPhone application, check out our video first look or read our extensive review.