My wife has the Kindle (keyboard version) and loves it. It's very easy to read (unlike backlit phones and iPads), light, great selection of books (some free or v.cheap) and it's a great device.
The downsides of the new version (the keyboard-less one) is that it has less battery life and won't do audio books. Other than that, it'll be as good as the others.
You basically make your money back after about 10-20 books. If you want a book that's just come out, the hardback could be £15, but the kindle version might be £5, so only 9 books of that price to make back your £89.
It's so easy too, you can browse the Kindle store from the Kindle and download straight away, or you can browse from a computer and just send the book to your Kindle. If you order your Kindle from your own Amazon account, it arrives already sync'd to your Amazon account so you can buy books right away without having to configure the account (apart from your Wifi password).
It syncs every time you read a book, so you can pick up where you left off using a Kindle reader app on your phone or PC that's sync'd to the same account. (IE I have the Kindle app on my phone, it's sync'd to my wife's Kindle account, so I can pickup any book she's bought/downloaded).
It's very smart, and if you delete anything from the Kindle's memory, you can just get it back without having to pay again.
Go for it.