> By utilizing Amazon's cloud infrastructure I'm guessing the Fire doesn't need a large amount of local storage or a large amount of RAM. Amazon is providing a top of the line user experience with less than top of the line hardware. This is my hope.
These two statements are at odds with each other. 8GB is paltry for any amount of video or music (on my iPhone, a full 13GB is music/audio - I listen a LOT of books on tape and podcasts).
The cloud for personal media is unreliable for a big chunk of time as many mobile providers either don't provide coverage, bandwidth or quota to fulfill my needs... it's not clear that 8GB+CloudDrive will do this (it would be great if CloudDrive 2.0 would just treat your local available store as a giant cache).
Proof will be in the pudding. However, given that Amazon has yet to tell us how many Kindles it's sold or how much money they have made on them, it's unclear how we'll be able to gauge it's success.