Kindle price has everything to do with the Sprint EVDO subscription it comes with--that's how Amazon puts the books in. You can also browse the net from anywhere, which is nice. The unit is also physically sound and remarkably easy to use and bug-free for a first-generation product from an inexperienced manufacturer.
DRM is a big issue, though, as is availability of e-books: with Amazon as the dominant player, selling directly through their proprietary channel, what luck do Iliad adopters have of finding books?