Kindle + iPhone + eReaders, oh my!

I just read an article at: http://www.dailypress.com/business/sns-ap-tec-amazon-kindle-application,0,5106545.story, which describes Amazon making available an app for the iPhone which allows it to play Kindle materials.
What do you guys think about this? I had a chance to attend an in-store presentation about the iPhone over my vacation, and while it is a really cool piece of technology, and not expensive in and of itself, the minimum amount for decent service is a 2 year contract at 130 plus tax per month. That’s a deal killer for me.

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