Well, it looks as though they are planning a touchscreen reader. Sony already has one. Thr iPad is touchscreen too.
Here's some more coverage:
http://www.t3.com/news/amazon-touchs...he-ipad?=43475
http://topnews.us/content/210564-ama...indle-hardware
http://www.telegraph.co.uk/technolog...er-Kindle.html
Perhaps Amazon is trying to compete with the iPad and include apps?