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We had to finally replace our K1 (purchased shortly after the Oprah deal) a couple of weeks ago after it took one too many falls out of the factory cover and started locking up randomly. OTOH, my wife's early K2 (US) is still going strong.
Personally, I'd say that, given reasonable care, the only long-term issue should be the battery. Also, Amazon has, so far, been great in offering discounted replacements for older Kindles which have died. (In our case, we were able to replace the K1 with a refurbished K3 3G for $70. The whole thing was handled as a regular RMA.)
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