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To dispute the "buy something else" crowd, I'll point out that Kindle devices are heavily subsidized because they are customer hostile.
One option is to never register the Kindle with Amazon. This makes it a bit harder when it tree-crashes, but if its purchased on your account, you can still use the warranty.
An unregistered Kindle doesn't get software updates. I'm not sure if it still gets the advertising.
Another option is to register, and quickly go to permanent airplane mode. You can then download purchased books with another device and push them to the Kindle although not quite as convenient.
A third option would be to prevent the update from landing on the user exposed file system, if you have a non-MTP Kindle.
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