I think it’s clear that the Kindle Fire is not meant to be an iPad competitor. It’s a Kindle for media. Amazon may not be competing with the iPad yet, but it is spending more and more time and energy fighting iTunes. Put another way, the Kindle Fire’s biggest problem isn’t the iPad — it is iTunes itself.
(via Tao of Mac)
It’s not a full iPad competitor yet. I think the next generation will go that way. And it is already an iPad competitor in media consumption, games (though a very poor one atm) and web browsing. Give it a generation and apps might start to show up (hence the amazon app market). Apple should be worried if this thing starts getting 5-star reviews - we’ll see if it does soon enough.