UPDATE:
well thanks for all the support over this issue people. i finally got feedback from my contact at the BBC submissions department and unfortunately they're decided not to peruse this story for watchdog
if anything, Amazon's duplicity on this issue has been proven by the work done in porting the 3.2.1 framework over to the K2 and DXG (see the Kindle development forums).
it's now very clear that the older hardware is more than capable of running the newer firmware and Amazon are withholding it in a cynical plot to boost sales of their newer hardware skews (K3).
This is pretty disgraceful for a company that claims to take customer satisfaction seriously. The updates we want are minor and would take a two man software team about a week to implement at most.