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If I had two different Kindles end up with a broken screen, and like the OP, hadn't dropped it or accidently damaged the screen in some way, I would look at buying something other than a Kindle.
Not sure what Amazon have admitted in this case (in general or specific to this one Kindle?), but trading standards are quite right that if it is an admitted manufacturing defect, then it's not really on to expect the customer to pay anything towards a replacement even if it is out of warranty (although perhaps not if it's something like 5 years old).
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