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There are two lengthy threads on the Amazon forums about this. Many conspiracy theory comments, and other speculating.
Most of us think it's a combination of issues, 3G support dropping, updates to Amazon's delivery systems that don't work correctly with the older hardware, and so on.
Amazon has been great about giving discounts towards new devices, I ended up getting $27.50 off the sale price of $89.99 for the newest Paperwhite for a trade in of my K2. $5 in trade, 25% off the new device.
After I reset the K2 back to factory specs, it still showed on my account. Trying to deregister from Content & Devices pulled an error. I had to have CS remove it from my account. I assume this error was related to whatever is going on with the older devices.
How much can the dropping support for 3G have to do with this, when Amazon still sells Kindles that offer 3G?
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