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What the OP of that post was saying was that if you had books on a K1 and you got rid of the K1 you would not be able to read those books on a K3. This is not correct. Kindle accounts are set up so that multiple e-readers can be used on them and everyone on that account has access to those books. You do not lose access when you change devices.
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I agree with you entirely... I was just getting all geeky and stuff with terminology.