A couple of things I find raises a few questions about Amazon releasing a tablet is they have an android app store, but only sell to in the US. Will they restrict tablet sales to just the US market? They have already shown their world-wide support for the Kindle. Perhaps they will open the app store when the time comes.
Secondly, as a consumer I am trying to work out what Amazon could possibly offer as an upgrade to the current Kindle line. Ok, a touch screen, which would encourage some to upgrade and others to flatly refuse. Processor speed increase would mean little to no difference for reading. Could possibly be the HD e-ink screen in the iRiver (is that a pearl screen?). Larger internal storage?
Personally as a device I don't think it is time for the Kindle to be replaced with a newer model, but given the speed the market is moving I guess Amazon HAVE to release something to stay ahead. Not only has the price really dropped for an e-reader but are we on the verge of expecting Amazon/B&N/Kobo to release a new product every 12 months?