I just noticed this morning that the Kindle Paperwhites are back in stock for Christmas. With a few caveats (no audio, no buttons) the paperwhite is definitely the best kindle out there. (Bookwi.se initial impressions. Full review)
If $119 is too much, the Kindle Basic (my main kindle) is a good alternative for a little more than half the price.
If a tablet is more your style, all of the Kindle Fires are in stock.