I purchased two of these eReaders as Christmas presents for my wife and daughter. I considered the new Kindle which is in the same price bracket but chose the Archos because it looked more versatile.
My family are delighted with the product, both using it every day for reading, playing games and facebook. It connected to my home network by wifi really easily.
My daughter's did fail, the screen became unresponsive, I returned it to the Archos repair centre and they sent her a new one which has worked well ever since. This was a very good service.
If you just want to read books the Kindle is probably better with its longer battery life but if you want to do other things as well the Archos 70b is an excellent compromise. The on-screen keyboard works well on both examples we have. We download books to a laptop and transfer them to the Archos. This is really easy and faster than downloading direct to the Archos.
Battery life is actually very reasonable, about 4 hours reading, less playing games. We are rarely so far from a power point that this is an issue. My "wimmin" love it.Archos 70b eReader