I got my first Kindle a year ago. I quickly replaced it with my current and second kindle, a Kindle Touch.
So, how well has it worked? Pretty damn well. I am a fairly heavy user, I think, and the Kindle has traveled quite a bit, in bags, suitcases and cargo pockets. The only care I take is to use a leather cover when outside the house.
I have read, according to goodreads.com, somewhat over 17000 pages in this year, in 61 books. That' a lot of pages. And if you look at the gadget now, it still looks brand new. No scratches, everything operates correctly, even the battery still holds the charge fine even if it's down to about two weeks per charge instead of almost three.
I still miss the older kindle's page-turning buttons. Using a touchscreen to turn pages is idiotic. but hey, it works, and I can still do it one-handed (yay for huge-hand boy here!)
The only things I don't quite like are the same ones as when I bought it.
The page has too little contrast when not ideally lighted.
You can't read in the dark.
Since the new paperwhite fixes both of those, I am getting one. I have already sold this one, and the difference is not a lot, so it's a very cheap upgrade.
Quite happy about Amazon's ability to not suck at giving me goods in exchange for money, too! It's rare that I want a book and it's not out there in Kindle format (still waiting for Evan Dara's Easy Chain!)
So, no unexpected issues, has brought a lot of fun, was cheap... that's the definition of gadget paradise to me.