[Quoth]

I was confused, because I thought you were responding to something I wrote.

I can't see how a 2008 model can do Enhanced Typesetting. Certainly it would have been 2007 design and the Amazon eBook publishing did start in late 2007, but only for the USA.

I suspect the 2010 Kindle Keyboard didn't get KF8 till later? Amazon calls it 3rd Generation.
The first Kindle was in late 2007 and only sold officially in the USA. It certainly depended on the Mobi stuff Amazon bought in. They bought (2005?) and later killed Mobipocket which started off as an app for the Palm PDA, then was on Windows CE and Symbian as well as the desktop. The Wikipedia article on Mobipocket conflicts with my memory and foolishly treats azw as merely a flavour of mobi. Perhaps the first version was, but current azw is KF8, maybe the 3rd version and otherwise you get .mobi or KFX (a set of files). I've no idea when KF8 came out which is sort of an Amazon version of epub2.

I can't see how a 2008 Kindle can have KFX, that would be the 2007 model. A 2010 3rd gen Kindle can't do KFX, and while really the so called "Enhanced Typesetting" is nothing to do with KFX because KF8 model could do it if Amazon updated the firmware slightly, in 2008 the 2nd Kindle didn't exist. There was only the original Kindle till early 2009.
The LAST FW for the original Kindle was 1.2.1. It's less able than 2.5.8, which is on the 2009 models and the DXG which came after the 2010 Kindle Keyboard.
The 2010 models and later, apart from the DXG, have more ram so got the Publisher Font selection and ability to do azw3 / KF8, but not the so called Enhanced Typesetting.

Sorry for confusing you, Hitch. Hopefully this clarifies it for other readers here.
From the start in 2008 is original Gen 1 Kindle (i.e. Made prior to February 2009) and I can't believe that it's any better at FW 1.2.1 than my DXG at FW 2.5.8, which while being made AFTER the Kindle Keyboard 2010, the innards is similar to the 2009 models which also use 2.5.8. They certainly can't do publisher Fonts, KF8 or Enhanced Typesetting, and they probably can't due to lack of RAM.

The 1st and 2nd Kindles (late 2007 to 2008) and (2009) did have keyboards, but it's the 3rd Generation one between the DX and the DXG that is called a Kindle Keyboard. Any 2008 model would have only black, 2 levels of grey and nearly white. Though it has an SD slot.

The Gen1 and Gen2 kindles don't read modern AZW, I suspect only azw1? Most AZW now is AZW3/KF8. The original AZW was just mobi with different DRM?

A Paperwhite 3 will certainly manage KFX and Enhanced Typesetting. Not sure what the earliest model would be. Was there KFX or Enhanced Typesetting before 2014? I think what Amazon calls 7th Generation was 2014, I think a new Basic and Voyage came out then, with the PW3 being in 2015, and regarded as 7th Gen.