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I don't think Amazon will abandon the E-Ink Market for a Color Tablet, they'll probably also launch with an an upgrade to the existing Kindle 3 just as B&N has with the STR. It will live side the new tablet for those that want E-ink. The new tablet will attempt to go head to head with the iPad, and while Amazon does have the cloud with Music and movie ability, they lack the range of Apps needed to challenge Apple's Dominance. But they will sell quite a few, I hope it forces Apple to come out with a 7" version of the iPad, I'd be interested in that.
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