I know a lot of reviews compare the Fire to the iPad, but this doesn't make sense to me since really, the Fire is closer to the iPod Touch. The price point is similar on the 8 gig model of the two devices.
iPod Touch
- better touch responsiveness
- more apps
- brightens/darkens screen automatically
- buttons for volume
- camera (but I don't use much, so this is isn't really that big of an asset)
- microphone (same as camera)
- light and fits in a pocket
- can organize apps into categories on the device
- better parental controls
- bigger screen
- fewer apps, although most of the apps I'm most interested in are available
- can display Amazon videos
- requires 2 hands to use (at least for me, my wrist starts to hurt if I use it one handed for too long)
- flash - this means I don't need a special app for facebook or twitter, I can use the web one, also pbskids seems to work just fine
- tabbed browsing
- searching the Amazon app store makes more sense than itunes to me (i.e. you can sort by price)
- the screen is also big enough to make using web-based google calendar useful
- can see more text at once in an e-book
- netflix
- basic email (gmail and hotmail are painless to set up)
- music
- words with friends