Check out this great review of Amazon’s Kindle vs. Amazon’s Kindle application for iPhone. I personally prefer the illuminated screen on the iPhone to the paper-like one of the Kindle. However, I agree that Kindle for iPhone is not the best application for the other reasons listed in this review. One thing they left off is that the formatting of the text doesn’t fit the size of the iPhone well and makes the appearance unorganized. Many of the independent book applications are much cleaner.
That said, the wireless updates and synching capabilities work perfectly.
My favorite part of this review: The fabulous hand model.