I would prefer expandable memory, but in my opinion 1.4 gb of space for books is just fine. If you want alot of audio books or music though it's not enough.
My big problem with the Kindle is the lack of a better system for organization. I would prefer user defined categories (or folder based) structure.
I really don't understand WHY they removed the memory card slot though. It can't take up that much room, and from what I've seen there is a section on the circuit board already laid out for it.
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