No one has yet mentioned that JRRT himself would likely be horrified by the idea of an e-reader. He didn't even like internal combustion engines, and barely read any "modern" literature, like anything written after 1066.
That being said, I too got a Kindle for Christmas. (The smaller 6" one) I was skeptical at first. I LOVE books. I love the smell, feeling the weight of one as I hold or carry it, the rustle of the pages. I get emotionally attached to my books, and have relationships with them.
However I LOVE my Kindle. I have a bad habit of reading several books at once, so being able to put numerous volumes on a small grey device rather than lug around a big bag of books has been a relief. Also, I can have audio books on it as well. So one can keep them and the reading books all in one place. And, the electronic ink really does look like the page of a book, so there is no glare. The battery life is also amazing. I use mine every day, haven't plugged it in for about a week, and it still has about 70% power.
Now, I have not put any Tolkien on my Kindle. Namely, because I already have all three LOTR in one beautiful red leather-bound volume. (Which has drawn some odd looks from coworkers when reading it in the break room.) I wanted to get Tales from the Perilous Realm on my Kindle, but it is not available in Kindle. (Also, if any of the illustrations are color, that will be a moot point with a black and white screen). I own on paper LOTR, The Hobbit, the Book of Lost Tales (1st or second edition, I can't remembe)r, Unfinished Tales (2nd edition) and The Tale of the Children of Hurin. I probably will in the future put something by Tolkien that I do not already own on my Kindle (I'm just going to dreadfully miss the Elvish and Runic title pages) provided there are no color illustrations.
Are the Elvish scripts and Runes included in the e-reader versions?