I chose the third option. Weeks (ok, months

) go by without me picking up my Paperwhite. I do almost all my reading on the iPad. I made some vague resolution to reserve my fiction reading for the PW but (with Dropbox/Copy and the Marvin and Kindle iOS apps) it's so much more convenient to use the iPad. A couple of friends have expressed interest in buying the PW but I'm holding on to it for those rare occasions when I'll have cause to be reading in the sun.
While I'm not interested in upgrading my ereader, I'm definitely interested in upgrading to a newer iPad model. My iPad works perfectly fine but a couple weeks ago it fell and now both bottom edges are dented. The dents are hidden by the cover and I don't see them at all but it's driving me crazy knowing they're there. My main problem now is trying to decide who to pass on my iPad to when I upgrade