Kindle Fire HD 8.9"

The 8.9 Kindle Fire is a huge difference from the 7". The screen makes web browsing and movie watching all that more enjoyable. If you don't think you need the smallness of the 7" then the 8.9" is definitely the better choice.
Web browsing just doesn't seem as easy as when I use Dolphin browser on my Galaxy S4, but it is very doable.
Watching Amazon Prime movies and TV shows is excellent. It can resume watching the media right where you left off, whether it was on the Fire or the computer. The sound quality is good, the screen quality is excellent. Shipping around parts in movie is as fast as your internet can go.
Reading is very comfortable, both landscape and portrait views are convenient. There are multiple color and size settings so you can choose what reading style you prefer.
Games and Skype aren't something I tested heavily enough to have much comment on. I could comfortably some that they are very good.
For the price I would definitely recommend the Kindle Fire HD for books and movies. I couldn't see it replacing my ultrabook but its a great media tablet option. If the Prime books and movies were available on a regular tablet, such as the Nexus 10, I'd probably have that, just for the flexibility of the full android. But obviously that's why Amazon had those features locked to the Kindle Fire.
Overall I'm very happy with the Kindle Fire HD 8.9

e-Readers

I have always been a big reader. It dropped off a bit during college because I was so busy reading textbooks that I didn't have as much time for pleasure reading. But now my whole life has changed because of ebook reading apps on my phone! Currently I use the Kindle app on my android the most. And I have never paid for a book yet - I get the weekly free ones. I also recently figured out how to borrow the Kindle eBooks through my local library (Score!). Sometimes I get a free one and it is one of 2 or 3 in a series. I will read the first one on my Kindle App and get the other ones from the library like normal.

One of the greatest advantages to having books on my phone is that they are always with me. I do most of my reading when I am at work waiting for a program to install, an update to download, or have some downtime. I love that I can read a little bit when I am waiting in line at the store or in the car (as a passenger).

One new thing i tried this past week was an audio book. The next ebook in a series I am reading (7th Heaven by James Patterson) was not yet available to me from the library but it was available as an eBook. I downloaded the OverDrive Media Console on to my computer (it was a wma not compatible with the android app yet but mp3's are) and listened to the book on there. As I got used to being read to I turned the speed up until I was at 2x which is just about as fast as I can read normally. I did enjoy the audio book and will definitely utilize that for books not available in paper or kindle.

I do also have a Nook account and have yet to add some free books to it before I install it on my phone. Overall I am extremely happy with being able to read so many more books. Being able to "purchase with one-click" is awesome and super easy, and I have saved a lot of money on late fees from the library! :-)