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Hi CLSkier, and welcome.
I can't answer your questions on a technical level, but I can tell you that the Kindle would probably be a bad choice from the user interface point of view - particularly for your water ski application.
The Kindle doesn't really have any usable input device. The keyboard is just about OK for entering search terms or short annotations, but it will be of limited use for entering data into an application. Similarly with the pointing device. It's fairly difficult to control, and not particularly intuitive.
As far as podcasts are concerned, it might or might not be possible to do what you have in mind, but the quality of the audio output isn't very high. You could certainly listen to a voice podcast on it, but with music the quality would be questionable.
You mentioned the iPod Touch. Personally, I would think that would be a better bet for what you have in mind, although, again, I can't comment on the technical issues.
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