Ouch! Bob,
Though I agree with you, I think you may have a bit of a "attitude" in your response. Lets all play nice
Any dropped computer (and I think the Kindle would qualify for that description) would not be covered under a warranty normally. It would be classified as owner caused and warranties generally cover only defects in the device. The $65 additional warranty being offered for K2 does allow for one incidence of breakage which i think is pretty dang generous.
As for giving K1 owners a break, i thought they did get one when they were offered to go to the head of the line during the pre-release promo. Amazon doesn't owe them anything frankly.