1. The guy has three kindles. I have one and I use it a lot. I'm not sure how or what I'd do with another two. One works perfectly.
2. His iPad lives in the bathroom and has replaced the magazine stack.
I have a Kindle DX for reading PDFs, white papers and other large reading format items. This mostly stays at home on my desk.
I have a small Kindle 3 which I use mostly for fiction, philosophy, and basically small form reading. This is what I take everywhere with me.
And I have a spare small Kindle 3 which my girl uses mostly. We started sharing our books long before the lend functionality appeared, and as she is not earning (full time PhD student) I was paying for the Kindle books anyway... so she just uses my account on a spare Kindle. She buys her own books for her PhD and just uses the Kindle for lighter reading.
As for the iPad I purchased... it resides in the bathroom and flipbook is used on it. Occasionally someone will bring it into the front room, but after a day it naturally seems to be put back in the bathroom.
I found the iPad so extremely limiting that it just isn't used in the household. The flash thing turns out to be a big deal for us, and you can only play so much Angry Birds. There's nothing we need it for so it's reduced itself to being a constantly up to date magazine to dip in and out of, and that's why it ends up being read on the loo or in the bath.
Re: the unsanitariness comment below... the iPad is in a case and you know, it's perfectly possible to clean a glass screen with more than just a smear removing cloth. Besides... if you think this is bad, just think of iPads in hospitals and pause to wonder how they will be sterilised.
The rest of my setup looks more like Tim Bray's: http://tim.bray.usesthis.com/
This is a big deal. For me the iPad is, above all, a space saver. Now I don't have to waste a couple of walls in my office for books (in progress) or a room in the closet for board games. The more things I can get on there the less physical space I need.