Just got one of these. I didn't own a Kindle 1 so I can't really compare it to that.
So far I'm pretty impressed. I read a lot on the subway, and usually switch between books often so this works out nicely.
There is also experimental support for PDF files. I just converted a 3m Digidesign PDF to the kindle format by emailing mysef the doc at
user@kindle.com and it was automatically synced down to my Kindle (costs 10 cents). So far so good.
Adam