That didn't take long. Barnes & Noble announced their Nook eReader two days ago and now Amazon has dropped the price of their International Kindle 2 to match the Nook's price point ($259) and eliminated the domestic-only version. Amazon has also updated the Kindle iPhone app to now allows creation of notes and highlights on the iPhone, and syncs these up with the Kindle. Hopefully, we'll see a software update for the Kindle that will allow PDF file viewing as well.
I love competition!