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Yes, both the Kindle 3 and the DX can scroll in very small steps. It is a combination keypress SHIFT+ one of the 4 direction buttons on the 5 way (or joystick on the DXG). I just took a piece of sheet music that shows perfectly on my Kindle 3, but a bit too small to read easily on the small screen and increased it with 150% zoom. With SHIFT+right button on the 5 way, it took 4 button presses to get across the page, where just the right button itself jumped to the next view without the overlap.
I have not seen any YouTube video on the Kindles, so I don't know what they are telling you, but I know there is incremental scroll. It is a bit awkward having to press SHIFT while moving the joystick (DXG) or pressing the appropriate part of the 5 way button set, but it works well.
Tony
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