Kindle for Android is upgraded fairly regularly so I'm sure you get the same features as the new PW2. I have the original Note and whenever I travel by bus (shorter distances) I wont bring my Kindle but read on the Note. I think it works just fine and the N3 have even larger screen with better resolution so it should be just fine. Use the sepia background for less eye strain, adjust screen brightness and when reading in the dark use white text on dark background. With the N3 you get so much more functionality that the PW2.
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