it is a lot for a gadget, but I haven't regretted spending it. You can get used kindle 1s, and probably the 2 also, since some people are upgrading to the new DX. If you check out kindleboards, and the amazon kindle community, they have for sale threads on there where they sell their older ones. Of course, it sounds like a lot of people keep the older one and pass it on to a spouse or friend.
It seemed like it cost so much that I didn't get the extended warranty with accidental coverage- and I'm reading a lot about people getting the screens cracked carrying them around (one story from a lady who fell asleep reading and when she woke up and raised up on her elbows, one of the elbows was on the kindle screen), so now I'm thinking about the amazon or square trade extended warranty.
vickie