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Keep in mind that there is a Kindle app already for the iPhone and iPod Touch.
So any multimedia tablet from Apple could just support the Kindle store as well and they could advertise that function along with the music, movies, TV, net surfing etc.
I agree they won't put out a dedicated reader--Apple goes after the mainstream and dedicated readers will never be a mainstream device. Again, it will be multifunction devices that can also read books that help ebooks take off in the future.
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