Amazon sort of needs to get their color model out there. Not for the android tablet aspect, but for the backlight. I had a Sony, replaced it with a Kindle. My wife went with the Nook. She has all three. I have an iPad which has both the Kindle and Nook apps, and she has an Iconia tab with both Kindle and Nook apps. While I spend most of my reading time on the Kindle itself, she will spend most of her time on the Nook Color and Iconia. She likes the backlight. I expect many people would. She has no problem with the reduced battery life. If you go with Kindle, your option at this point for backlight is to buy a relatively expensive tablet from someone other than Kindle (Amazon). With a 'low' priced backlit Kindle, comparable to the Nook color, I bet they would take some market from those that are Kindle based, but want the backlight and are now buying tablets of some sort.
Personaly I would be happy with a grayscale, e-paper something with a backlight/sidelight you could turn on or off. I have the reader to read. It is light, very legible, perfect size, has great battery life. I have a book light for when it is dark, just like on a real book. Would be nice not to have to fiddle with the attached book light. If I want to check mail, surf the web, etc, I have other options for that, including my phone.
Sometimes you are the anteater, sometimes you are the ant.