I bought a K1 for my sister a while ago and I got to play with it the last time she came to visit... if I had to choose I would pick the K2 over the K1. I think the K1 was easier to hold in the hand since it is shaped like a wedge, especially since I like to hold the kindle on my left hand. I do not like the scroll wheel for navigation but it is something that I could get used to if I needed to.
Now that the K2 can display PDF's I think it is a no brainer.
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