I have the second generation Kindle (or Kindle 2), which was pretty pricey when I bought it. However, I feel like I have gotten every cent's worth, and am not looking to upgrade anytime soon.
If I was just shopping around for an e-reader now, I'm not sure that I'd still go with the Kindle 2. It would totally depend on price and what other e-readers had to offer.
If/when I do upgrade, I thought I'd kind of like to get an iPad. But then, that just seems like a netbook in "pad" form, so.....I don't know. But yes, they are more right now than I am willing to pay.