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The end of the article does say you need to keep WiFi on in order for the feature to show up. I assume that’s why you are not seeing it.
We can only speculate about why updating the firmware alone is not enough to turn on the feature. I am guessing they want to have good metrics on how many Kindles have a given update installed and are still in active use, and the only way to do that is to enable only after the device calls home.
I don’t think they particularly care that you have jailbreak except it probably voids any warranty that would otherwise be in effect.
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