I've just recently started making the transition to ebook reading with my iPhone's Kindle app -- after a little hesitance about reading a screen rather than ink on paper, I've gotten used to the form, and really appreciate the convenience of always having my reading with me (and the free ebooks help too -- I definitely recommend His Majesty's Dragon). The Kindle app is seeing some good support from Amazon, too -- the most recent update not only enables the Retina Display on the iPhone 4, but adds both video and audio to the offerings in certain titles. If the books are created for a "Kindle Edition with Audio/Video," you'll be able to play other media right next to the text in the app.
Of course, the actual Kindle can't play this media, which probably means a few things. One, Amazon realizes how important the Kindle app is to their overall strategy -- even though the iPad is a competitor to their own hardware, Amazon is fine with running both horses in the race, so they have a better chance of grabbing a larger audience. Two, Amazon is most likely working on another version of the Kindle. They probably can't compete with the iPad on quality (given Apple's experience at this point at making and selling beautiful hardware), but they may still aim to compete on price. Which shouldn't bother consumers -- more competition means more choices, and that's always good for us.
[via Apple Insider]