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If I bought one it wouldn't be an upgrade from my Kindle any more than it would be an upgrade from my toaster (no snark intended). It's a completely different device, per my use at least. News reading/viewing, magazines, maybe some games here and there.
Putting the CPU issue in perspective, the Iconia 7" tab at $350 has a tegra2 and 1 gig of ram. If Amazon is able to utilize their buying clout with manufacturers, and is willing to sell at a slim margin while banking on content sales(or the rumored loss, which I doubt), it seems they may be able to pull some respectable hardware at $250.
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