Hmmm... It worked, with a couple issues:
Saved public key is not in Open-ssh (standard) format. Copying that to authorized file causes kindle to refuse private key.
Puttygen however also has a window captioned "Public key for pasting into OpenSSH authorized_keys file". Inserting that in the authorized_file via copy and paste makes it works.
Second issue is: yes, it works, Kindle accepts it but issues a warning along this line: "Server refused our public key signature despite accepting the key".
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