The Kindle Fire HD might be a smaller iPad alternative, at least as far as content goes. On top of ebooks, it also handles full colour content, audio and video and has a touch screen. You can tie it to your Lovefilm account and, unlike Apple, Amazon appear to treat their customers as grown ups when it comes to how they watch their content.
I’ll have a tablet eventually. I don’t know if it will be a Kindle Fire, but it’s on the list. It’s also a potential platform for the content I create, so I’m going to keep an eye on the specs.