I doubt you will notice a difference on the Kindle. The device is slow overall, but fast enough to do its job. That said: You might get a small speed gain, yes. SD/MMC blocks (the built-in flash is a eMMC, so it's more like an SD-Card than like a modern SSD) are quite small and the protocol has means for reading consecutive blocks without issuing new commands. But then the overhead for reading individual blocks isn't that big either. And it won't need a lot of CPU power at that point as the hardware has support for SD/MMC storage anyway. Having you flash erase/write cycles eaten up by a "defrag" doesn't sound like a good idea overall. Especially so as the MMC is masking the real flash layout, like the erase block size, for which the access could be optimized otherwise.
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