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I dropped my 1st K3 and was unfortunate enough to break the substrate. It didn't fall from that high a height either. What was worse was that the warranty had already lapsed. I was fortunate to be able to get a 2nd hand for only $60.00 odd bucks but wouldn't have had to pay that much if I'd dropped it before the yr was up. So far with my PaperWhite I haven't had that problem. I got that one in the contest in Winter 2012 and so far I've had no problems and no need to upgrade to a PaperWhite 2.
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