I bought a Kindle KSO and had a friend bring it to Beijing for me. I don't mind the KSO ads; the screensaver ads have all been for VISA and Buick, and there's an Olay ad at the bottom of the screen. No big deal, as they're all quite unobtrusive.
My assumption is that in the future we will be able to hack the phone to get rid of the ads, so the opportunity to save $25 now made the KSO too good to pass up.
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