I’m a little late on this but the other day I was traveling back from Austin reading a book on my Kindle 2. When I went to increase the font size I realized that it must have received a software upgrade as the configuration screen had the option to for screen rotation. Not sure why I hadn’t thought about the idea of being able to read on my Kindle sideways but after doing so it makes complete sense.
The other thing that changed is that the Kindle now supports PDF documents natively. Just plug your Kindle into your computer and copy your PDF files into the documents directory. The good thing is that the PDF document looks just like the original and no weird looking formating happens as was the case when I would email my PDF’s to the Kindle conversion service. The bad thing is, I can’t increase the font size on native PDF docs so the font is tiny and you no longer have the option to have your PDF’s converted to Kindle format in case you wanted to continue doing that. My other suspicion is that the document size will be larger than the Kindle converted files which will allow you to store fewer book on your Kindle.
Bottom line. I’m still getting an iPad when the 3G model is available. 
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