Engadget also has the story, now with this: "update: yep, it's a phone." So it looks like all who are saying it's a phone are correct.
Next bit of speculation: Cost, quality, and will any MobileRead moderators be tempted to buy one? (Nate the Great doesn't count, as he already has one of everything ever designed and Bezos has probably given him one to evaluate for his
Digital Reader blog.
)