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I think the new Kindle will have a touchscreen and be a 7" reader. Especially if Sony doesn't release a follow up to the PRS-950.
This is one major thing that could differentiate their product from the Nook Touch and Kobo.
The best part is it wouldn't be any bigger than the Kindle 3 is now because of the touch interface. So they could market it as they got rid of the keyboard and gave you more area for text.
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