I would pay $20 a month for Instapaper if it let me select specific articles and output them wirelessly to a Kindle, complete with a TOC and sections.
But in the meantime: my project for the first quarter of 2010 will be an application that pulls your starred articles from Google Reader, let’s you check off the ones you want, and outputs a formatted ebook file complete with TOC. I’ve been hunting online with little luck for a script that parses XML into a Kindle-compatible MOBI file. Something tells me there’s a large stumbling block up ahead…