I think all the rumors about a thinner, black improved screen kindle in August is what the DXG turned out to be.
I think we will see at least one more kindle announcement over the next four to six weeks before xmas 2010. It could be an increased feature "K3", or it could be a dirt cheap K2 (most desirable price point would be $100). I haven't got a clue as to which way they'll jump.
As was mentioned above, there is an internal dev project code named "Shasta" that comes in two flavors: with wifi and without. You can google on shasta+kindle to get what additional info exists.
wifi only would be one way to get the price down.
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