I purchased this kindle to share with my 10 year old and the vast majority of the time it works great. I use it primarily as a book reader, she also reads on it but also uses it as a web consumption device. She uses dedicated services like Netflix and web based media like the PBS web site for video and Pandora for music. The kindle fire handles all those tasks extremely well. Very little to no delay or buffering and excellent video quality.
The only issue we have ever had is sometimes touch controls are spotty towards the edge of the screen. I stress that the issue is intermittent but can occasionally be frustrating, especially when we are sharing a game.
We like the kindle fire enough that I will be giving her our first generation for her own use and buying one of the new 8.9" models for myself.
Go to Amazon and get Kindle Fire HD deal 2012 to have cheapper price for Kindle Fire HD.