The K3 is no longer a rumor, it is now a disturbing reality.
http://online.wsj.com/article/SB1000...036454208.html
US$139 for the WiFi only version; smaller, lighter, with the newer, better screen.
Dunno how it'll price out for the UK so there's no telling how it'll reset the pricing for competitors but there's no question it's going to make waves.
Edit:
Okay, Engadget has UK-specific info:
http://www.engadget.com/2010/07/28/n...on-and-189-3g/
£109 for the WiFi only Kindle.
Plus they're opening up a UK-specific ebook store.