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The Kindle extended warranty Amazon offers does seem to cover a 1 time only replacement for any accidental damage. Certainly, the UK version does.
Someone did post on this site last week that the Sony 300 was being sold off for under $50. Having owned and loved a 300 I can say it is solidly built and a good size for smaller hands. Also, at that price it is a less costly loss if someone has a go at "bounce the shiny toy". I realise it does not have any SD card option, but nor does a Kindle.
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