Really geeked about the Kindle ap for the iPhone. I just bought the Kindle version of The Graveyard Book as a way to check it out. Personally, I will probably still do most of my reading with Stanza, but that's because most of my reading is manuscripts - not finished books - and Stanza makes it really, really easy to upload Word documents. But if I were a big consumer of other publisher's books, Kindle for iPhone would probably be my preferred reader. Anyway, I'll report back when I've read a book on it.
Meanwhile, my good friend Stephenson just bought a Kindle 2. He sends me this screenshot, which warmed up my morning:
And did you hear that B&N just bought Fictionwise?