In an article in the New York Times yesterday, Steve Jobs sums up the problems with the Amazon Kindle thusly:

Today he had a wide range of observations on the industry, including the Amazon Kindle book reader, which he said would go nowhere largely because Americans have stopped reading.

“It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”

Of course, as EnGadget points out, you're reading this right now.