If you want the larger and easier to read screen and the purpose built, the Kindle does work reasonably. I can't compare it to units like the Nook since I haven't seen them.

I don't know if B&N or Amazon are cheaper, but the Kindle books on Amazon are typically several dollars less than the paper versions.

A sample:

2009 Current Medical Diagnosis and Treatment
Kindle: $38.85
Paperback: 43.17

Pirate Latitudes: A Novel, Michael Crichton
Hardcover: $14.00
Kindle: $9.99

Neuromancer, William Gibson
Paperback: $10.20
Kindle: $5.59

As for the Apple tablet, I wouldn't rule it out and it rumors suggest it would compete with the Kindle directly. It is noted there is a planned even on the 27th:

http://www.macrumors.com/2010/01/04/major-new-apple-product-on-january-27th/
"The gathering is to be held at the Yerba Buena Center for the Arts in San Francisco, a space Apple often uses for media events like these. According to other sources, it will occur on Wednesday Jan. 27"

Obviously it could be false, but if you are not in a major hurry, it couldn't hurt to wait until then and see if there is an announcement, and if so, if the product sounds worth waiting for.

*shrug*

-john