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I never use iTunes to place files on any of my iDevices. Dropbox works great, simply use the "Open With" feature to open a book in whichever app you want to use. I even use iBooks sometimes for epubs.
Kindle books can be emailed to the Kindle app on the mini, or pulled from Dropbox.
I picked up a second mini a few months ago when Best Buy had them for $299. I use the 16gb in the kitchen, and the new one with 128gb storage as my go-to device for taking with me when traveling etc.
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