I just bought the Kindle last week and I love it! I never thought I would get one, but the convenience is wonderful. I will still read "real" books, so it does not totally replace books for me. I have not bought many books yet. I am watching for deals and bargains. I will still definitely use the library and look forward to Overdrive accepting the Kindle. You can also "borrow" books from other Kindle users. I am working on figuring that one out.
Good luck with your decision.