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To be honest, replacing the screen is probably going to cost you more than replacing the device, after the discount that Amazon will give you for doing so.
Another thing you could do is look out for a 2nd-hand one - eg in the "Flea Market" forum here at MR. People are constantly selling old devices, and now is a good time to buy, with the recent release of new Kindle models.
But the first thing I'd do is phone Kindle CS. They are very nice people, and it's not unknown for them to offer a free replacement. At least see what they have to say.
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