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Sadly, Amazon has not updated the Kindle DX recently. There are a handful of other large screen e-ink devices that are still on the market. These include the Onxy M92, Icarus Excel, Ectaco jetbook color, and Pocketbook Pro 912. Sony has a prototype of a 13 inch e-reader which is currently in testing at three Japanese universities.
The Onxy allows for handwritten annotations, the Sony will as well if they ever release it. I do not know if screen contrast has changed much since the graphite. I do not think that they have for large screen readers.
As you noted large screen e-readers are expensive. The Jetbook is 500 USD, the Onxy M92 is 279 Euros.
If you wanted to spend at least 400 pounds, and wanted a larger screen, then I would wait to see what happens with the Sony, as its screen is twice the size of the Kindle DX. Otherwise, you have to decide whether or not the upgrade to a new machine is worth it for you.
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