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I recently got a PW3 to replace my PW1. Visually, I don't find there's much difference, the lighting is a little more even in low light but I don't use it that way. The thing I notice most is that it is significantly more responsive, and I appreciate the improved typography and more refined UI.
I actually think the '$79' kindle has better contrast and bolder fonts, if you have no use for the front-light.
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