The short battery life looks a bit of a drawback to me.
I have a Kindle, and one of it's selling gimmicks for me was that it can last weeks without needing to be charged, making it ideal to take away on holidays.
I'd probably be more interested in it for that than for reading books, but I really can't justify spending more money on another bit of tech, The number of computers I own is already into double figures!
Horses for courses really. the ones that get used the most are
a multimedia desktop system that is connected to my TV and Stereo. a decent laptop and a netbook and as they are all used for very different things it's not really possible to say that any one is better than the other.
I wouldn't touch it - it has a back lit screen as opposed to a E-ink screen. This means that you are pretty much doing the same as reading a computer screen - it will give you eyestrain after a while. If you like reading, then you really need to buy a kindle or Sony ereader - they are so much better for reading than anything else due to the screen
like Vic, I also find Kindles much easier to read than backlit screens, though this is probably a matter of taste. See if you can actually get a look at a Kindle somewhere and you'll see the difference, and can decide for yourself whether you prefer it.