I just did a count and I now have more ebooks than paper books. It is clearly time to get an e-reader though I was initially holding out for the colour (Triton, I think) e-ink.
Awesome post, overread! Probably the only thing I would add to your list of downsides is the lack of epub support. I mean, it's not hard to convert epub to mobi with calibre, but it seems a petty inconvenience to the end user.
Also, thank you for the links.
HampsterStyle: I used a 3g kindle keyboard for portable internet up until recently. Although the connection speed isn't the greatest it worked well for basic web browsing and communications like you mentioned. I also had no problems discerning images on e-ink (i.e. reddit imgur links, etc.). The e-ink display works well in the sunlight and is actually easier on the eyes compared to traditional LCD if you have a lot reading to do online. I haven't tried a kindle touch but from what I've heard elsewhere you would be best served with the physical keyboard model. At first the web browsing will feel clunky but once you learn the hotkeys and interface it's definitely workable.
Just what I needed to hear. There were a lot of helpful posts in this thread but yours most directly answers my original questions so you get the star. Yay!