Engadget is also reporting (
see here) that Amazon will use Qualcomm's Mirasol screens in a future Kindle (but say they can't confirm the announcement). They also state that the device should be ready for release in the Fall of this year. The device they were looking at was 5.7" but they mention it scaling up to around 10" or tablet sized. Lastly, check out the video on Engadget's site -- that is one wicked device.
Here's the Qualcomm Mirasol Website:
www.mirasoldisplays.com the device on their homepage also looks very Kindle-ish.