Forget the Kindle news today; I've got abetter deal for you. Target are currently selling the iriver Story HD for $99. That's $40 off the retail price, and given the features it is right around the price it should have been all along.
This was a rather pretty but unremarkable ereader when it debuted a couple months back. It's based on the latest generation high resolution 6" screen, and has Wifi, SD card slot, 2GB Flash, and as you can see from the image it also has a keyboard. You can load ebooks from any number of ebookstore or you can buy ebooks from the Google eBookstore on the device itself.
It didn't make much of a splash when it launched, but I did find one interesting quirk. It has a hidden web browser. It wasn't terribly useful, but looking for the browser was fun.