The first reviews of the new $79 Kindle are starting to appear. The Kindle Touch hasn't been released yet, which is what I think most people are waiting for (or the Kindle Fire), but the first and least expensive kindle is out and has been combed over by the people over at Engadget.
The new Kindle looks like it's a great basic reader and at $79, it's a really inexpensive device, but the choice to scrap the keyboard in favor of size and leaving out the killer new features found on the Kindle Touch like X-Ray make me wonder if this is the right way to go. For $20 more, the Kindle Touch gets you everything the basic Kindle offers and a more.
Update: Gizmodo now has their review up, with more of the same but slightly less enthusiastic. Their basic conclusion is to wai for the Kindle Touch as well, with a 3/5 rate.