The weirdest thing to me about this Kindle is the price point--why not drop another $15 and make it $99? At $114, it just doesn't seem very appealing, but I feel like they could sell a ton of them advertising it as "under $100".
I wouldn't get it, but it shouldn't actually affect the reading experience:
"When you buy Kindle with Special Offers, you are getting the same bestselling Kindle for $25 less—only $114. Special offers and sponsored screensavers display on the Kindle screensaver and on the bottom of the home screen—they don't interrupt reading."
Don't let that post confuse you. They didn't bother to read anything about it and just assumed the ads would be in the middle of the text.
This is perfectly sane. And for a bigger discount, I'd even consider one with ads in the middle of the text.
However, I already have a smartphone with the Kindle app, so it's hard to justify spending anything on another device to plug into the wall. (Especially since I don't mind reading on an LCD at all.)