A nice walk-through and comparison to the Kindle2.
Amazon Kindle Third Generation With 3G/Wi-Fi | Wired.com Product Reviews
WIRED Amazon keeps pace with a more competitive e-reading marketplace with a smaller device, more readable text, yet and another improved hardware interface. $139 price for Wi-Fi version will open the door for multi-Kindle families. Battery life is long enough for space shuttle missions.
TIRED Still the same DRM, no touch-screen navigation, the book-light case is too costly. Only those with tiniest fingers will avoid hitting the "back" button when moving the cursor down. Interface for newspaper and magazines still clunky.
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