Not sure if this is any kind of a complete answer to your questions, but I do see that from the information on the new K3:
Quote:
New Proprietary Screen Technology - Faster Page Turns, New and Improved Fonts
Kindle’s new, high-contrast display is further optimized with Amazon’s proprietary waveform and font technology to make pages turn faster and fonts sharper. Waveform is a series of electronic pulses that move black and white electronic ink particles to achieve a final gray level for an image or text. We have tuned Kindle's waveform and controller mechanism to make page turning 20% faster. This waveform tuning, combined with new hand-built, custom fonts and font-hinting, make words and letters more crisp, clear, and natural-looking. Font hints are instructions, written as code, that control points on a font character's line and improve legibility at small font sizes where few pixels are available. Hinting is a mix of aesthetic judgments and complicated technical strategies. We've designed our proprietary font-hinting to optimize specifically for the special characteristics of electronic ink.
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I think things are probably going in the right direction with each new generation.