> That line of reasoning might fly for a $100 tablet. For a $300 tablet, it does not.

I agree completely.

But this isn't a tablet. This is a Kindle. That's why it's the "Kindle Fire" not the "Amazon 7" Tablet Buddy Pro S 1.0." It's going to be exceptionally good at doing Kindle things: reading books, listening to music, streaming movies – and paying for the privilege.

They're going to sell a shitload of these things. They know how to make a great experience around content.