I gifted my K1 and got a K3 Wifi, and couldn't be happier. Didn't really need 3G, wifi works just fine.
Seriously, you ought to look at using Calibre to maintain a library on your computer instead of that sd card. What if it fails? And having collections on the K3 will make your life a whole lot easier.
The Audible books work fine on the K3.
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