I like the idea of Kindle (especially the DX model that was just released) and I would enjoy trying one out and wouldn’t mind owning one if only for reading fiction. They are thoughtfully made.
An iPad is a beautiful machine and has many uses beyond a reader. I would use it regularly.
I’m not hotly pursuing either, but would happily accept either as a gift. Now out comes this story which tempers me a little more. It says that reading e-books takes longer than print copies and other interesting points: Study: E-books take longer to read than print