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As others note, the DXG just came out a couple of months ago. But the only hardware change was the screen and different color of plastic. That represents some sort of information, but doesn't indicate what is coming next. It is fun to speculate however, which I'll do here:
Theory A: iPad has in fact effectively killed existing demand for large format eink devices (a lot of this demand was driven by desire for viewing A4/Letter PDFs, which iPad arguably does much better). Rather than invest in design and launch of a new model, they used DXG launch as a teaser for the K3 launch. With minimal redesign and expense, they were able to simultaneously deflate the rumors of Kindle's imminent demise, and pave the way for the more far-reaching improvements of K3. They plan a software update to extend the life cycle of DXG indefinitely (better PDF support, new fonts etc), but plans for a full-on replacement are on hold, as forthcoming, lower cost Android/Windows/WinMobile7/iOS tablets are expected to further erode demand for large format eink devices.
Theory B: a DXG replacement is planned for early 2011. Like K3 it will be a trimmed down version of the model it replaces, include wifi, and will have features that make it attractive for e-textbooks, including voice recording, etc. It will have a touchscreen, or at least the ability to annotate with a stylus (for PDF annotation especially). Maybe a SD slot or Bluetooth for keyboard/headset etc. There will be specialized applications announced for education market as well. Price will again drop to place it below the cost of larger tablet devices.
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