I've used both the Kindle and Kindle DX for an extended period of time. When a friend offered to buy me one or the other as a housewarming gift, I chose the smaller one. The DX is just too big for its purpose, IMHO. The fact that it is outrageously expensive, relatively speaking, is just another reason to skip it. I love my little Kindle, and even if the DX were similarly priced, I wouldn't choose it.

I'm sure everyone has different tastes...but, I'd recommend trying them both before buying. You might find, like I did, that the regular Kindle is just a better form factor.