No definatly go for the Kindle. It's amazing.
My aunt got it and I'm totally in love with how cool it is. I'm asking for it for Christmas. Get the newest Kindle- the Kindle 3, it's the best.
The Kindle is amazing! The iPad is pretty sweet too but the Kindle with it's E-ink technology and lack of a backlit screen is SOOO MUCH easier to read, especially for long periods. You may want to consider the Barnes and Noble Nook too as it is open to the e-Pub format which would allow to you download books from most libraries and Google Books. I am not sure why Kindle hasn't opened up to the e-pub standard yet. I guess they only want people reading books they bought from Amazon.