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I really hope this is true. For $79 you get a Kindle 2?! If you wanted a Kindle you'd be an idiot not to sign up for Amazon Prime. Or is Amazon only going to provide the Kindles to existing Amazon Prime customers? Or do you have to purchase a certain amount of books to qualify? Who knows, but I'm really looking forward to hearing the details.
I was hoping to see Amazon fight back against the iPad with a dedicated reader in the $99 price range. Free or $79 is even better.
In regards to DRM. I believe Amazon will allow ePub without DRM at some point. The publishers aren't going to give up DRM anytime soon, so if Amazon supports DRM-free ePub then customers are still locked into Amazon's reader, but can view public domain books that can take advantage of ePub formatting -- like Alice In Wonderland with its illustrations and the text in the form of a mouse's tail.
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