gdgt

I think Amazon's strenghts lie in an eReader with a non-backlit screen so additional functionality (touchscreen) and colour would certainly be a compelling reason to buy or upgrade if you're already a Kindle owner. Any new features however, would need to be considered against battery life as being an eReader most would view it as something similar to a book - something you can take anywhere without too much additional maintenance. For instance, I read newspapers on my Kindle 3 and it's brilliant! I can buy papers that aren't at my local newstand. Colour would be nice but I don't read any newspapers that are in colour anyway.

if they go with a color e-ink screen then maybe. more likely a price cut on the current Kindle's. don't see why a hardware refresh would be needed. unless they copy the new nook or the color e-ink screen or better both. Drop the keyboard on it too.