This is all pure speculation, of course. Nothing in that supposedly inside info that couldn't be guessed at by a anyone with any sense. They seem to be describing a similar tablet to the Google Nexus 7. No surprise there.

Honestly though, seems like you are better off with a Google Nexus 7 as it has Android 4.1 without all the Amazon fiddlings with the system. A purer Android if you will. The Kindle for Android tablet seems to be better than the Fire's Kindle app. You wouldn't have the native Amazon support for magazines though, but you would have a more usable tablet right out of the box.

I honestly thought the Fire was a good reader until I got my Touch. The Touch does book reading much better. The interface is better and cleaner and looks more like we are use to with Kindles. It is a pity Amazon won't make the Fire's reading app more like a traditional Kindle and add more options for formatting. It is a really bland reading app for a device like the Fire. I personally think the Fire should be their flagship reading device and thus have their flagship reading app, but it doesn't.

I already sold my Fire. Used ones seem to be selling well on eBay right now, but if you wait until a new Fire is announced I suspect the sale prices will crater.