The Kindle 2 fixes a lot of my issues with the Kindle 1. The next/prev buttons are much better, I don't accidentally page anymore. The display is faster, though it could still be faster. There still aren't page numbers, still only location numbers. The progress bar is now very understandable. The on/off switch is now on the top, which is a better location, though its actually only a standby switch. The wireless switch is now a soft-switch. The Kindle 2 is also smaller, which is nice. I still think it wastes way too much real-estate on the keyboard, if the device was the same depth but only a little larger than the screen, that would be pretty nice.
Newspapers on the Kindle 2 are better, you can now skip to the next article from within the article, for instance, and you now get more images.
Since I got my Kindle, I've only bought books on the Kindle. It works well, and the convenience is unprecedented. The two biggest problems I have are availability of books on the Kindle, and the fact you can't read your book during take-off and landing because its an electronic device.
I also said last time that I wouldn't use a separate device if there was a reader for the iPod Touch. There is the Kindle App for the iPod Touch now, and I've used it quite extensively. One limitation is that they don't do periodicals on it, which is annoying. Otherwise, the page flipping is easier, its in color, its very nice. It doesn't have a built in store like the Kindle, but it does link to the web browser for Amazon's iphone store. One annoyance: the kindle version of books is only available this way, if I browse the mobile store from my Pre or G1, the Kindle version of books isn't offered. Obviously the battery life is much shorter, and the screen size is much smaller, and its an active display instead of the e-ink. That said, it also fits in my pocket, which is a big plus.
I have no particular interest in the Kindle DX, I've never felt that I needed more screen real estate.
The DRM issue is still annoying. We debated having Courtney keep the Kindle on my account so we could share books, but decided not to since we don't share that many books anyways.
Overall, highly recommended.