My K2 was purchased in July 09 after I dropped the K1 my wife purchased me for Christmas when they came out. Side note - She was so concerned about me not having my Kindle as a frequent traveler, that she had one fedexed to a my hotel in Houston. That is why I am 27 years with my high school sweetheart.
It's the little things.
I am not much of an outdoor reader, but took it to the beach this July. It was one week out of warranty. The screen was fading significantly while relaxing at the pool. The best way to describe it is the the look you get on paper when your laser printer is running out of ink. I did some googling and found out about the sun fade issue which appears to be limited to certain batches from the time-frame when I purchased.
I had an extended warranty, but preferred to deal with Amazon on the known issue. It was two weeks out of warranty when I called, prepared to use all my persuasive skills on the CS rep. After a quick description, he said, "It is fading in sunlight?". I answered yes. He overnighted me a new one for Saturday delivery, no questions asked. I returned the old one in the same packaging with a label that they provided to cover UPS fees.
It was completely painless and another great example of how serious they are about providing best-in-class customer service on the Kindle and delighting the customer.
Jack, the known issue that I had can be easily tested by taking it out in sunlight for 10 minutes or so. It returns to normal after you take it back indoors.
Jim