I can deal with half the storage. The UI pretty much ensures I don't want to put too much stuff on it anyway. I can deal with no keyboard. No audio kinda kills it for me. I like to listen to music without carrying another doodad around. Also when I get tired I sometimes use TTS.
The non touch also has only 128m working memory (half the k3's), which may put a real crimp on what can be installed from the kindle dev folks.
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