DH has a Droid and I have a Kindle. For pure reading the Kindle is far superior. My eyes KILL me after reading anything on the Droid (and I read an insane amount of books). The Kindle also has a big advantage in that you get free 3G abroad (very important since we travel internationally a lot!) whereas my husband's Droid only works in the US (ok, obviously, you still have the apps but no 3G).
We're actually considering buying DH a kindle too now that they are a lot cheaper because we always end up fighting over the kindle!
I agree that it's annoying that the prices are going up but, honestly, I'd still prefer the electronic version so I can have easy access to them at all times. I do wish the interface was better, I hate that stupid joystick but I still love my kindle!
Oh, and I really, really, really wish they had more kids books on there!!!!
