It went away on the touch screen Kindles. The chapter markers were tied with a way to navigate by chapter using the keyboard - not sure if that was possible with the 'non touch basic' Kindle but I think it was with the 4-way once reading options were visible.
One way to restore the feature for touch screen Kindles would be to add an improved indicator to Page View. It could show chapter markers on that progress bar, as well as showing percentage. There's plenty of room.
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