Re: Both products are a big fail.
I agree because, PERSONALLY, I have little use for tablets BUT (and here it is) our household does have a Kindle Fire that gets A LOT of use. 1) Wife watches Food Network while keeping website up on Kindle. Bookmarks recipes and then sets the Kindle up on a stand while cooking (don't try THAT with a laptop or while holding your smartphone close enough to you can read the recipe). Tablet wins.
2) To keep my toddle from driving us both insane on 1-2 hour drives, we hand him the Kindle and he watches movies in the car (we can also strap it to seat)
3) If my phone is charging and the wife needs use of a full desktop and all I want to do is read some news, I take the Kindle and use Pulse.
4) We have one TV. My son might be watching something on the DVR or Netflix, my wife might be on the computer (we also have one laptop) so I pull up HBO Go or Netflix or Amazon Instant and watch something if I don't read.
So the Kindle is mostly for my wife and son with me being an occasional user. I really wish the Nexus 7 had been available at the time I bought the Fire but for a $180 item (got it on sale), it was worth the price.