Yes, color E-ink is available now, at least according to the NYT article last week.
No, Amazon will not comment on its plans on releasing a Color Kindle. In fact, they go so far as to say it is not even a thought at this point.
Why?
It is NOVEMBER... If Amazon were to show the slightest interest in developing a Color Kindle for release, it would KILL their expected Christmas sales of the Kindle 3.
I would bet, that right now, there is a Color Kindle (I christen it the CK
) already developed. Amazon will probably announce it next Spring after the technology is mature and more importantly... profitable.
Remember, they are in business to make money, not to keep every salivating, rabid Kindle fan happy. I am describing myself by the way.
Just my 2 cents.