E-ink does graphics very well. It's just not in color. AAMOF, the current crop of Kindles have a higher resolution than the iPad (167ppi vs 132ppi); which is one of the reasons it displays text so clearly and smoothly. Now I know there's more to displaying graphics than just resolution but the screen saver pictures on the Kindle are pretty incredible. I've even replaced some of them with B&W versions of my own pictures and they are awesome looking (I'm old school and I love B&W photography ).
That is a good point, e-ink doesn't do graphics near as well as an LCD.
I had been an Amazon customer for years so Kindle was the obvious choice for me.
It is nearly incapable of handling video. It's supposed to be able to do basic animated graphics but why would you want to watch video on a B&W display anyway?
However, the latest e-ink display has a resolution of ≈375ppi...again that's B&W, but nearly three times the resolution of the average LCD tablet. Even more than the high-res Samsung recently announced. Epson has prototype using the latest e-ink technology displaying an A4 sized (≈8.25x11.7) newspaper page that has a resolution of 3104x4128.
The current color e-ink (E-ink Triton) looks great in direct sunlight but it's still a far cry from the color depth of LCD in all other situations. IIRC, because of it's high resolution it's used in mostly in small applications like watches and the such...I think.
For video or color the Kindle is the wrong choice. Then again, if I wanted a good color display for uses beyond just reading books I wouldn't go with the Nook either. I would get a full featured Android tablet or an iPad, but that's just me.
a group of unrelated kittens is called a kindle...a kindle of kittens.