Engadget has an indepth review with lots of detailed photos. Here is their summary:
When you step back and take a look at the device, it's clear that the most notable changes have come in the form of hardware tweaks. Besides the text-to-speech function, there's not much you can do on the new Kindle that you couldn't do on the old one. Books still cost just as much to download, and you still have largely the same set of options when you get them on the device. The buy-in for the unit itself is $359 -- not cheap -- and everything you put on it is going to cost you a little bit more. After a while, that can start to add up, and we're not convinced it makes sense for just anyone. Ultimately, it boils down to a question of needs, because -- like the first Kindle -- the Kindle 2 doesn't represent such a sea change in technology that we think everyone should run out and buy it.
A lot of people are fond of calling the device an "iPod for books" as if that's just what most people want or require, and we're not so sure of that. Still, the Kindle 2 delivers an enjoyable experience with noticeable leaps in usability, and big leaps in industrial design. If you travel lightly, are a voracious reader, and absolutely love gadgets, you'll probably get this device. Is that everyone? No... but it's a lot of people we know.