Once I got to a location where I could do more than look at the user's guide, my frustrations increased. Actually navigating a book on the Kindle is not very fun, mostly because it has no concept of "pages" or "chapters"--to navigate to a location you have to enter its special index number on the Kindle, which involves tedious guesswork, as numbers are assigned to things like chapter titles and line spaces, not to pages per se (imagine trying to navigate a novel in Notepad). On the other hand you can search on words, which I guess is useful if you have memorized the text of the book, although I don't know how many people do that. You can only hope that the book has a table of contents, which renders the "go to location" function superfluous.
The user's guide itself is very lacking, and I found it didn't adequately explain many basic features of the Kindle. I discovered by accident that left arrowing on a title on the home page allows you to delete it--which is not intuitive in the slightest. Sorry, but this is generation two? Seems more like an early beta.
Then there's the Kindle store. Here again the letdown was huge. Searching for books is a pain because it is not possible to manually sort results (for example by price, author, etc.), and the price isn't even shown in results (in fact if you add a Kindle book to your Amazon wish list, even that won't show the price--it's as if Amazon is deliberately obscuring this information). Accessing a book from the list of search results should be done with care, as an accidental click on the toggle button will immediately purchase the book in question. Amazon lets you cancel, which means they are aware of this UI bungle but can't be bothered to fix it.
Beyond this problem, the Kindle library is quite poor at present. Many titles from even the past few years are absent, and don't expect to find anything older except public domain books trolled from Project Gutenberg. You can futilely submit requests to the publisher for a Kindle edition, but there's no indication that these requests go anywhere or that publishers ever respond to them.
It's odd that so many books that publishers have bothered to keep in print remain unavailable, when you consider the expense of maintaining stock, transporting them to stores or to buyers, tracking inventory, and the relative ease of digitizing backstock. Perhaps Amazon's cut on book sales makes it an uninviting proposition for niche books. But plainly the Kindle is useless without a massive library, since each Kindle user will have his own subject preferences. Amazon supposedly benefits from the long tail, but the Kindle's tail is quite abbreviated.
When a book is available in Kindle format, odds are it will be only a couple of dollars cheaper than the physical edition. I wanted to buy Vincent Bulgiosi's Reclaiming History, a massive 1500 page book that would be much easier to handle on a Kindle, but Amazon wants me to fork over $30 for it (I already own the hardcover--purchased from Amazon, in fact). Sorry, that's a bit much for a book I already own, and it shows that the Kindle's pricing model is about making as much money as possible by offering only a nominal discount for most books. Surely it costs more than $3 to produce a 1500 page hardcover. It is the same story with some programming books I was interested in--barely any difference in price for books that cost nothing to produce in digital form. It smacks of DVD edition double-dipping, whereby movie studios expect that you will buy brand new copies of movies to get slightly tweaked digital transfers and case artwork.
Then there's the fact that you don't really own a Kindle book. You're renting a digital copy, which Amazon or the publisher can destroy at will. I don't feel at all secure about having my library on Amazon's servers or its gadget that has no replaceable battery, yet I have to pay twice if I want both a physical and digital copy of a book. No thanks. Doesn't work that way with my CD collection.
While the Kindle's promise is to allow you to take a library with you everywhere you go, the reality is:
- the library consists of only the very latest mass market books plus some indifferently presented classics
- flipping through a book is still easier than flipping through a Kindle; the software interface is confusing and awkward and slow
- you will have to buy hundreds if not thousands of new books to make up for the cost of the Kindle itself
Hence I could only recommend the Kindle to someone who routinely purchases mass market books that sit on big displays at franchise booksellers like B&N--Harry Potter, Scott Turow, Dan Brown, Stephen King, and other lowbrow junk. Otherwise you will still end up buying half your books (or more) in physical editions, with a few on your Kindle.
And did someone mention resale value? A Kindle book has none. For all but the handful of volumes you must keep in your personal library, most books don't have much value once read, but can at least be sold, given to friends, used to keep the washing machine from wobbling, etc. A Kindle book is worth nothing the second you download it. It can't be resold, redistributed, or even thrown at someone who annoys you. Yet there is no accounting for this in its pricing model. You pay virtually the same price, and sometimes more, as for a physical copy, to say nothing of used books or the cost of requesting the same book from your local library. If it is a book you will want to keep, you won't want to keep it on a fragile electronic device that may no longer be supported in a couple of years.
A huge missed opportunity. Just no one tell my wife, the dear thing got it for me as a gift.

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