Amazon just took the gloves off.
I should note that this deal first went live on Saturday, and I've been checking all weekend to make sure they're still in stock. As of this morning, they are.
Also worth noting: it wasn't very long ago that scoring an e-ink-screened Kindle e-reader for $169 was major news. Now, for the same price, you can get a state-of-the-art color tablet that's good for way more than just books.
Specifically, you can tap your existing Amazon library of books, music, and videos--and access considerably more by subscribing to Amazon Prime ($79/year).
That whole ecosystem thing has its appeal, though I still think if you want the ultimate in versatility (i.e. access to multiple bookstores and an Android Market's worth of apps), you should opt for something like the Lenovo IdeaPad A1. (Alas, after weeks of selling for $199, the A1 is currently $209--but be patient, it'll drop again.)
I don't own a Fire myself, but I've played with one a bit. It's nice, especially for consuming media, though I'm not wild about its lack of expandability and relatively anemic feature set. (Read CNET's Kindle Fire review to learn more.)
That said, for $169 I'm extremely tempted--especially considering that Amazon backs it with a full one-year warranty, same as new Fires. (Barnes & Noble does likewise with its Nooks.) For all intents and purposes, this refurbished Fire should be the same as a new one--just $30 less.
Bonus deal: Today only, 1SaleADay has the Altec Lansing inMotion IMT620 iPhone/iPod speaker dock for $39.99, plus $4.99 for shipping. That's $10 less than the last time I wrote about it. Plus, it's new, not refurbished. If you're into slanty designs, you'll especially love this dock.