The idea that makes this gadget a winner is that, for most of us, productivity is done on a regular PC with mouse and keyboard. Tablets for the most part are relegated to entertainment devices, for consuming content. For regular people, aka, non-tech junkies, there is no reason to spend $500+ on a device just for reading, watching or listening stuff; or to replicate, to a lesser degree, the functionality of their computer; and that's where Amazon gets it right. The price for this thing is just $199. Yep, 200 bucks for all that functionality.
So the question is: Why this is so cheap? Well, this is no iPad 2 nor Honeycomb tablet. With it's last-gen processor, weak sounding 512mb of ram and cheap looking/feeling materials; it is obvious where Amazon cut cost. Also, there are no cameras, no GPS radio and no 3/4G data connectivity. But apparently, that is the propose, the things it has are geared towards media consumption while keeping cost down; and that's a big plus.
On the software side, Amazon took the widely us Android kernel and modified to it's desire. Throughout the device, there are no signs of Google to be found; instead, what you get is a nice cover-flow like interface for your books, apps and media and their cloud-based web browser Silk.
All and all, it looks that Amazon is craving a little niche for themselves in the crowded group of tablets. Does this makes it a winner? We have to wait at least for the coming holiday season, only time will tell. Hit more for... more.