The answer is 'Yes you can'
I can now answer my own question: you can get text to float around images on e-ink kindles. I got this to work by setting the widths of the div tags in percentages rather than pixels.
I still have the problem that as the resolution of kindle fire is higher than e-ink kindles, the images are larger on the e-ink kindle. Thus to set a div tag wide enough to include the image on the e-ink kindle and leave the text a suitable distance to the right, means that there is a large gap between the image and the text in the kindle fire, where the image is much smaller.
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