For the first time ever, Amazon has appropriately priced one of their kindle devices. A keyboardless kindle with page turning buttons, $79, available today.
So far their misstep seems to be the introduction of multiple kindle models today. IMO, they should have had two only. Kindle Touch at $79 and Kindle Touch 3G at $149. Even better would have been a single model with 3G hardware at $79. But you'd pay the extra $70 to activate it and for unlimited services.
Regardless, I think while Amazon might have been the number 1 eReader seller (there's no definitive proof as far as I'm aware), this new product introduction is sure to put them there and/or keep them there by a wide margin.
It's also too bad the Kindle will serve you ads - and that Bezos touts this as a feature.
Now let's see if they release something in color to beat down the Barnes and Noble Nook.
EDIT: $199 for an LCD Kindle Fire as expected. No 3G radio on this model and no 3G option announced. This is going to hurt everyone else making 7-8" Android tablets. Not that those guys were moving any units anyway.
Only 8GB storage and no volume buttons. Works with Amazon's Android store, but only for Android 2.x apps.
Clearly a color ereader with some media capabilities, not a tablet computer.