I already have an iPod Touch.
Seriously though, the reason I’ve always thought about getting a Kindle is for reading. I’m an easily distracted guy. Even at night after I crawl into bed, it’s always tempting to grab the iPod and check my email/Facebook/play a game one more time instead of grabbing a good book. To read, I basically have to isolate myself from other media if I want to read more than one paragraph in a row.
So despite the pretty colors, an eReader that lets me watch movies and play games would be a disaster for me. Give me a Kindle Touch and I’ll be just fine thank you. (Or a plain book, but you get the point.)