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Yes, they need to change instead of having a one-size fits all. Also the no-charge delivery via cell/mobile costs them, not the customer as is the case with Apps on Mobile Data or WiFi. Part of the reason for their scheme is the Cell/Mobile delivery at their cost.
I'm not at all defending them. I think it's wrong, but it's probably not stupidity or malicious intent but bean-counter driven.
Since unlike Smashwords, or PD sites, Amazon knows exactly which model you have they should be offering the full resolution to all newer models, no matter if download for USB or Whispernet WiFi to eink. They already charge KDP uploaders for delivery, so Mobile/Cell delivery to eInk with "free" mobile/Cell ought not to be a consideration of image size.
Also part of the reason for KFX was to be able to start reading during slow delivery.
So I totally agree, it's a stupid system they have. I was only musing about why they do it. I'm sure it's not arbitrary.
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