My take on the Amazon vs. Macmillan ebook price scuffle is that Amazon is making a PR mistake. If you want the background roadside assistance on the controversy, Macmillan author John Scalzi has a great commentary on it here:
http://whatever.scalzi.com/2010/01/30/a-quick-note-on-ebook-pricing/
I think that right now Amazon is pulling it's weight around, but should be careful. After the DRM issue where they pulled copies of 1984 off of people's Kindles they should know better than to piss off the reading public.
One of the biggest reasons I bought a Kindle rather than another ereader (Sony or Nook) was that Amazon has the largest inventory of new books available in electronic format. If they start picking a choosing which publishers to carry that is a limiting factor.
Now I have no idea about what kind of eye strain you would get reading a book on an iPad, but I do know that its is going to be really nice for magazines, video, and non-flash web browsing. All of which are not so hot on the Kindle's black and white e-ink screen. The e-ink black and white screen is what I as a voracious reader, want. I also love the instant availability of lots and lots of books. Newly published books. Amazon should not screw with that.