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yes, of course.
amazon kindle devices itself can save much money for you.
and the books you get from amazon for reading purpose will surely be cheaper than that from iBookstore.
so if you are ready to get a modest one, you may choose kindle.
as for drawback, let me think.aha, iPad is good for playing games. so if you like both games and books, iPad can be a nicer one, and you have an alternative way to read amazon cheaper books on your iPad all the way.
Well, I think that the memory size is a pretty big drawback, as you mentioned. The Kindle Fire seems to me like something of an Android lite tablet, but without the ability to download apps outside of those on Amazon's app store, you don't have access to the huge library of apps available from the Android Market. With the Ice Cream Sandwich OS pretty much here and the Kindle using a version of the older Android 2.3 OS, I would have concerns about even being able to run many future apps on the Kindle. Maybe Amazon has taken this into account already, but I'm not sure about that. The funny thing about "real life" as you put it, is that in my experience a lot of tablet users I know have ended up mostly using them as mobile web browsers and for music/video/gaming entertainment, so the limitations may not be all that significant in actual use. There was a recent article on CNET comparing Kindle, Nook, and iPad that you might find interesting: http://news.cnet.com/8301-17938_105-20009738-1/kindle-vs-nook-vs-ipad-which-e-book-reader-should-you-buy/