Amazon just (as in a few minutes ago) dropped the price of the Kindle 2 to $189. This seems to be in retaliation to Barnes & Nobles dropping the price of the Nook to $199. Previously, both devices were $259.
Barnes and Nobles also offers a WiFi only version for $149 which has given credence to the (as yet unsubstantiated) rumors that Amazon is working on a WiFi only version of the Kindle.
Since Jon and I are both big Kindle lovers/supporters/fanboys we will keep you updated as new information is released.