My initial reaction, judging solely from the photos, is that it looks pretty ugly. It looks dated in "Apple White", which Apple stopped using a few years ago. Jonathan Ive certainly hasn't been anywhere near this one. Some of the features seem unnecessary. It allows users to read newspapers and blogs - but so does the internet, available on most modern mobile phones. Also, although Amazon's backing means a large number of titles will soon be available for download, at around $9.99 each they're not much cheaper than a good old paperback.
I can see how something like this would be useful for business purposes, to carry many previously bulky reference and text books, but for leisure I think people will stick to old fashioned books - at least until Apple comes up with something more desirable than Amazon's effort.