The Kindle Fire is a 7-inch colour display tablet with no camera and no 3G/GPS built in. It is thicker than iPad 2 (11.4mm compared to iPad 2's 8.8mm) and weights only 414 g. Perhaps, the killing feature is the price tag: US$199. For the reference, the recommended retail price for iPad 2 starts at just US$499.
Kindle Fire supports up to two-finger touch at once and runs on a forked Android OS.
If you are just into e-readers, Amazon also have new line of Kindles:
the Kindle (black and white non-touchscreen) for US$79,
the Kindle touch (black and white touchscreen) for US$99,
and Kindle touch 3G for US$ 149.
You can pre-order Kindle Fire here. Kindle Fire will be available on 21 November 2011.