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I think the kindle now having library lending is great but library ebooks are still in their infancy. Limited selection if available at all and long wait times, adding kindle I'm sure will make them even longer. I have not the slightest idea what percentage on ebook users take out library books, so saying this will do in the competition seems unfounded. What makes the kindle such a force in the marketplace has less to do with the device and more to do with the fact it is backed by Amazon. I know several people who have heard of kindles but have no idea any other ereaders exist...
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