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Obviously, Amazon seems, at least to me, to be pricing their tablets so low, that their will be no point in buying a e-reader, Kindle or other, if you can have a complete multimedia solution for 120-150 dollars more.
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If that's what Amazon is thinking, they'd be making a mistake. There's a not too tiny demographic that is simply not interested (for whatever reason) in reading—for any length of time—on an LCD screen. Plus we've had the discussion quite a few times, as well, that many people are not interested in an all-in-one multimedia device that just happens to have an ereader app installed on it. There will always be a market for dedicated eInk readers, until screen technology comes up with an affordable hybrid that will satisfy both needs. So I believe there will be a continued need for improvement and upgrades to the Kindle eInk reader platform.