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I recently upgraded to a Kindle Touch and love it. Zero sluggishness, store navigation is twice as nice and typing is much easier.
Unrelated to OP's gift card mention but regarding gift cards nonetheless: if you buy an ad subsidized model, you can't pay for removal with a gift card - credit only, so that may be something worth considering if you don't want the entanglement of having a credit card tied to your account.
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