Ok now... Go Amazon. With HP's little stunt, Amazon saw the writing on the wall, and actually acted upon it...
$200 is a reasonable, acceptable price point for a device like this. It isn't fully featured (no camera), but it's inclusion of the Amazon ecosystem makes this device intriguing.
This of this as Amazon's iPhone, where the Kindle was Amazon's iPod...
Still want to wait a generation, personally, but this is a phenomenal development.
Next generation will likely have 3G/4G connectivity, a camera and a mic. They don't need this stuff yet, but they can add it gradually, much like how Apple does business...
And an 80 dollar e-reader is far more in-line with reasonable pricing. Still too much for me, but now it is in 'gift' territory, and it now becomes economical for students, vs real books.