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The rumor is that a larger Kindle Fire is expected (think Kindle Fire DX) and that it will be more directly competitive with the ipad with more speed/memory and camera/mic/bluetooth etc. Code name is "Hollywood" which suggests more media features as well. It isn't a matter of if this is true so much as when; Amazon needs to compete with Apple, especially in the textbook market, so a larger device is critical.
Personally I'm more interested in a color e-ink or hybrid lcd screen that is readbale in daylight. I don't miss the camera or mic, and I still prefer the 7" size. But I'd prefer if it were more of a true Kindle sometimes.
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