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I found the screen to be noticeably improved, plus it's speedier on the page turns. Also, K3 adds PDF annotations.
My favorite thing has turned out to be the wifi. When I first got my Kindle 1, I emailed all kinds of files to it. Pretty much anything that I would normally print out and throw away later, I sent to Kindle instead. When Amazon started charging for delivery, I didn't want to run up charges for disposable documents. Now, with wifi, I can once again email everything to Kindle, free of charge.
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