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It might be wise to post in the Kindle department of mobileread, as I've a feeling that Kindle have discontinued text-to-speech on its newer models, including the Kindle Touch. If you can get an older Kindle, I'm not sure which, that may have the text to speech option.
Also, you only need the wi-fi function when downloading books, which maybe you could do for your grandmother.
Be ware that Kindles don't accept epubs, so you will have to convert any epubs into mobi by using Calibre. I'm sure this will all be made much clearer by the Kindle users.
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