Amazon just (as in a few minutes ago) dropped the price of the Kindle 2 to $189. This seems to be in retaliation to Barnes & Nobles dropping the price of the Nook to $199. Previously, both devices were $259.
Barnes and Nobles also offers a WiFi only version for $149 which has given credence to the (as yet unsubstantiated) rumors that Amazon is working on a WiFi only version of the Kindle.
Since Jon and I are both big Kindle lovers/supporters/fanboys we will keep you updated as new information is released.

[...] This post was mentioned on Twitter by Jon, John. John said: [blog] Price Drops on eBook Readers – http://is.gd/cY4uG [...]
I figure if I wait long enough they’ll just pay me to take one off their hands.
That very well could be. eBook readers are like game consoles, they don’t actually make any money on the hardware. Or in the case of many game consoles on launch, they actually take a loss on every unit. The money is made providing you the content itself. Same thing with the iPods. Don’t need to make money on the player as long as people are using iTunes.
It appears that the refurbs are now $139.99 on Warehouse Deals