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My daughter often reads several hours a day on Kindle's 3G, mostly at fanfiction.net. The very simple browser doesn't get in the way, since what she wants to read is lightly-formatted text archives.
I believe it's truly unlimited; there's not enough people putting strain on it that Amazon has to limit it. Restricting the bandwidth would mean cutting off browsing & sales at their own store, which is probably where the majority of Kindle 3G activity is.
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