My partner and I got his parents' old Kindles for Xmas.
They're not computers, and they don't do everything, but they are very useful.
I thought at the time that a lot of old Kindles would be getting passed on - the early uptakers for the Kindle seemed to be older people that weren't that worried about the specs. In our case, the APs were happy to replace the slightly heavier and larger Kindle keyboards - they don't miss the extra storage because they keep everything on Amazon's cloud anyway and delete from the Kindle once they've finished reading and they didn't use the text to speech and audio functions anyway.
I seem to remember that the new Kindles are selling at below cost-price, and if so, that's not a bad move for them, because now where there were two people in the potential market for ebooks, there's now four, although all my books come from Project Gutenberg, and my partner only uses his for pdfs (which display OK, if a little clunky).