I'm not convinced that Amazon will be marketing it in the Kindle sector. Kindle at the moment is very much associated as a device incredibly well suited to reading a book, and the existing third generation one is incredible at this. If I'm paying three times as much for a Kindle tablet, they've got to be selling it me on features that compensate for the less-optimal reading screen and massively reduced battery life. They've got to be selling it on the basis of tablet-like apps.
This might mean a focus on magazine/more graphically designed newspapers, perhaps distributed through the Kindle Store, that take advantage of the nature of the Tablet's screen; but at the very least it will have to be a tablet with an exceptionally capable browser.
> They've got to be selling it on the basis of tablet-like apps.
Mom 'n' pop users don't care about "apps". They want books, email, web browsing, music, free streaming movies, and whatever silly game is popular at the moment (Angry Birds, Sudoku, and Bejeweled). A Kindle tablet can do all of these.
This might mean a focus on magazine/more graphically designed newspapers, perhaps distributed through the Kindle Store, that take advantage of the nature of the Tablet's screen; but at the very least it will have to be a tablet with an exceptionally capable browser.