I've had a Kindle for a while now. I've read maybe five books on it. I'm not the biggest fan honestly. I like the immediacy of the analog book experience. I can flip pages instantly and go back whole sections without even thinking about it. If I want to do the same on the Kindle it's a big hassle. I still buy books on it from time to time if it's something new that doesn't have a cheap-o used version on eBay or at the used bookstore, but for older stuff I always just buy a used copy.
I think the highlight option can be very useful for Kindle but I do agree that the feeling is not that the same. If I buy a book nowadays is because I wanna scribble on it :D