I held a Kindle in my hand a week or so ago. I've got a friend that buys pretty much every gadget there is to see for himself - he got one from the first run.
I fell in love with it (and ordered one) for the following reasons:
1. It's easier on the eyes, and the text clearer to look at (IMO) than a real book.
2. There is no scrolling regardless of font size you choose. Each page is a page.
3. I was invited to this friend's family account which is some Amazon thingybob by which all members of said account share the books they buy. So if I buy one, my whole "family" can download it.
4. My friend makes eBooks
He literally photographs every page of a book, slurps it all up into PDF followed by OCR. I looked at examples of his work. Indistinguishable from "professional" jobs.
5. You can press one button with the cursor on any line of a book and it invokes a resident dictionary listing all the words in THAT line you might need a definition of. You can then choose the word you're wishing to define and see a detailed definition.
6. It has a highlighting function. All passages you choose to highlight are stored in a separate text file. Great for research/paper writing.
7. No backlight makes for long battery life and easy reading in the direct sunlight. If it's dark, your regular old booklight still clips on.
I'm sure in the future, something better will appear, but for now, I think I'll be satisfied.
As far as DRM, there's a huge number of classics I've always wanted to read that are public domain and available. Even if all I ever really get is all the classics for 400$, that's still way cheaper than if I'd bought them all.