I see that the Paperwhite diags menu has "Install USB bundle" and "Install Wifi bundle". I tried wifi, and it tried connecting to a router (unknown SSID) then failed with "update*.bin not found"...
It looks like you can install update packages from the diags menu. Perhaps that is what you are supposed to do the the "Install Fastboot bundle" option in the K4/K5 diags menu. Those install options set a mode (fastboot/USB export/wifi) then try to install an update package from there...
I wish I could take screenshots from diags. I suppose should make a video of my Paperwhite diags exploration...
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