I have been assuming that when my K3 gave up the ghost, I would get a Paperwhite. However, a colleague brought her new PW in yesterday. I found it SO small and sort of insubstantial. And I didn't notice a big difference in the screen quality.
I use my K3 in a lighted case, and I guess I prefer the "book like" feel of the setup. Sort of has all the instant gratification of an eReader, but without a techy feel. Sounds silly, but true.
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