I have one.....
Kindle 2 standard sized screen
Downsides?
Personally............I read a lot of "out there" authors..............some things I can not get in Kindle format; but really these are few and far between.
There is NO backlight.........so if you want to read in the dark, you'll need to buy a little reading light to clip on it. Not a big deal.....as having a backlight feature would affect the reading comfort.
Coolest feature?
There are many...
1) You can read it outside (unlike iPad, etc)
2) The battery lasts forever between charges (like a week or two)
3) There are TONS of "classics" available FREE. Go to Amazon.com and check out the free kindle books.........80% of the books on my kindle were free.
4) The built in dictionary is slick.........when you stumble on a word, you highlight it and it gives you a definition.
5) In a PINCH, you can use it as an internet browser..........anywhere (since mine had built in 3G, etc).
6) If you have a wife or kid (or friend) with a smartphone or ipod touch, they can log in to your amazon account and access all of your books.
7) You CAN find some content for free from dubiously legal sources.
8) You can takes hundreds of books with you without having to carry a lot of weight.
9) You can add notes, etc for future reference.
I've had it since February.
I know that they are CHEAP right now compared to what I paid. From what I understand they are now offered in wifi OR 3G/wifi. I think I'd get the better one since I read while riding in the car and with 3G you can access the internet to browse or to buy books when you are not near an internet connection.