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Kindle Fire doesn’t have eInk, so in my mind it doesn’t replace, but instead complements, the eInk kindle versions.
True, the Kindle Fire lacks eInk… In my mind, eInk is what makes Kindle (and other readers) superior for reading over a tablet or other backlit-screen display. A friend of mine — also a Kindle lover — is trying an experiment of reading only on his computer/tablet screen. He already reports sore, blood-shot eyes after only a couple days. Reading on eInk is just as easy as reading the printed page.
I want to spend some time with a Kindle Fire to experience what the core functionality — reading — is like on it. I expect it won’t be as pleasant as reading on an eInk Kindle 3, but I will try it to find out.
I find the 3G connection the most valuable aspect of my Kindle 3. But I mainly download books, a few tens of kBytes usually. I can see how Amazon would not be eager to provide subsidized 3G connectivity for a general-use browser or streaming-video player such as the Fire. I don’t think there will ever be a subsidized-3G Fire.
Yes, my experiment reading only on my Fujitsu T4220’s LCD screen is causing significant round-the-clock eye strain. I do find that setting the Kindle for PC software to white characters on a black background helps reduce eye strain.