The current Kindle has limited functionality as a computer, is US$399, has an electronic-paper display, wireless Internet, a QWERTY keyboard and week long battery life.
There are now several sub-notebook computers for around $US500, which would be about the same size as a larger Kindle. These have a shorter battery life than the Kindle, but have a larger keyboard and more general purpose software. It seems unlikely that a university student would want to purchase and carry around both an eBook and a notebook computer. Given the choice, they are likely to prefer a slightly more expensive but more useful computer (perhaps supplemented with a large screen smartphone).