I've been reading on my Paperwhite in landscape orientation for a number of weeks now. The text justification is much better and line length is more like a real book. Might be just a phase I'm going through, but it feels a little less cramped this way (and I use a fairly small text size).
That said, I would prefer more control over the margins than the stock firmware allows (and unfortunately the Kindle apps waste a lot of space in margins too), and if they can squeeze a 7" screen into a same-sized device I'll be interested.
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