Kobo Arc Overview
The Kobo Arc was announced right before Amazon's Kindle Fire HD press release, so this can be taken as a direct competitor. It certainly seems like it once you see the specs and that $200 price-point.
Two Benjamins will get you a 7-inch, Android 4.0 tablet with 8 GB of internal storage and a 1.3 MP camera. Not quite up there with the Kindle Fire family, but definitely another good e-reader option.