I was right!!
http://www.wired.com/gadgetlab/2009/04/kindle-2-displa/
Seems like the Kindle 2 people had the same problem.. click on link to see sample image.. damn..
The top image is how the fonts look on the Kindle 2 (and ours as well though ours are slightly worse). The bottom image is the SAME screen after the guy hacked the device to use both a bolder font and disabled anti-aliasing.
VERY interesting 4 page article on the font problem our devices have in common with the Kindle 2, screenshots galore:
https://sites.google.com/a/etccreati.../kdesignworks/
I still think I have a bum screen though.. seems like some Kindle screens are more faded than others, even when fixing the stupid antialiasing.