Photos accompanying my review of the Kindle Fire.
The Fire is a hugely good tablet. It's a compelling size, it's loaded with content, it's plugged into a great Amazon ecosystem, and at $199 it's a clear distinction from the $499 iPad.
I think the two devices complement each other well. An iPad user wouldn't be satisfied with the Fire. Anybody who's rejected the iPad (due to its size, price, or lack of focus) will find that this is the tablet they've been waiting for.