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KSO is intended to generate a new revenue stream for Amazon -- ads as you use it. They are willing to take an upfront hit of $24 to $50 bargaining that you will generate much more than that in ad revenue over the life of the device. That remains to be seen, of course.
Currently, KSO -- like so many things Kindle -- are only available for US residents. So I expect there is no plan to "drop" non-KSO editions any time soon.
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