So the "new"
Kindle 2.0
got cheaper (now $299) and maybe more people are interested in getting it. I guess one thing is clear, it is a book reader. That's why you should get it, not because of something else.
But if you do get it, there is an additional, free, thing you can do. You can do basic web surfing with the built in 3G modem (uses Sprint/Verizons network I think). This is at no extra cost. This is the same way that you download and buy books on the
Kindle
.
Click on the menu button, go to "experimental" and then "Basic web". That starts the browser. There are two modes in the browser, basic mode and advanced mode. I do not know the exact differences, but one big one is that in basic mode there is no support for javascript. There are probably more things, but as my screen shots will show you, things look nicer in advanced mode. The browser handles cookies just fine and will keep you logged in to your favorite page (e.g. facebook et.al) between sessions so you do not need to re-enter your user name and password.
The settings you can do for the browser are:

Now, let's look at some web-sites. All sites will be tried with basic mode first, and then advanced. In some cases there will be two screen shots as the first page is not showing much. Just look at the top of the kindle to see what web-site and what mode it is in.
Remember that you can click on the photos to make them larger and then you can zoom in even more. Use the browser "back" button to come back here.
Here is ESPN in basic mode on the
Kindle
:

ESPN in advanced mode on the
Kindle
:

Facebook in basic mode on the
Kindle
:

Facebook in advanced mode on the
Kindle
:

CNN in basic mode, page 1 on the
Kindle
:

CNN in basic mode, page 2 on the
Kindle
:

CNN in advanced mode, page 1 on the
Kindle
:

Google News in basic mode on the
Kindle
:

Google News in advanced mode on the
Kindle
:

My yahoo in basic mode (not logged in) on the
Kindle
:

My yahoo in advanced mode (not logged in) on the
Kindle
:

DP review (one of my favorites) in basic mode, page 1 on the
Kindle
:

DP review in basic mode, page 2 on the
Kindle
:

DP review in advanced mode, page 1 on the
Kindle
:

DP review in advanced mode, page 2 on the
Kindle
:

As you can see the
Kindle
is not always that great, but overall it does an ok job. It is not a speed daemon either, so you really should buy it for the books and take this web-browsing as an extra. That being said, it is quite possible that they improve the browser (it is just software, right) to make the pages look better.
Support me and my site here by clicking on the links if you are going to buy the Kindle. Remember that Amazon has a quite generous 30-day return policy... and the Kindle, unlike other devices, cannot be tried in store. My review blog post of the Kindle is
here.