Actually, it was usually quite the opposite that people usually complained about: files that look normal on the Fire will have ludicrous line-spacing when viewed on the Touch or the Kindle Keyboard. I can't speak for the PW.
Coming from a Kindle 2 to the Fire HD, I don't really see anything out of the ordinary with the Fire's line-spacing (assuming it's on the smallest setting and the ebook creator hasn't botched things, of course).
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