I'm such a big fat hypocrite! Last year I posted in this thread saying how I loved to feel a book in my hand. Well, I still do, but I now love holding my Kindle in my hand as well!
First, I got my husband the base model off Amazon, set it up for him and thought, "This ain't too bad." Then, my daughter sent me the 3G one for Mother's Day (she got one refurbished from Woot for about $80 and it's fine) and I'm officially hooked.
I love being able to sample the books before buying. Sometimes you get as many as 3 chapters on a sample which can give me a good idea if I'll like the read or not. I can make folders, hold thousands of books in one place, surf the Web, have a separate Kindle email account, lots of features. Plus, there are tons of free books; classics like Velveteen Rabbit and such.
This won't keep me from buying real books from time to time especially cook and craft books, but I have to tell you that I'm now a Kindle kook.