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1. My wife and I have our Amazon account linked to several devices: my Kindle, her iPad, an iPod Touch, my Blackberry, and my computer.

If Amazon is being that permissive NOW, then I assume things won't get more restrictive.

2. How young? If they're old enough to read a chapter book, then they're probably old enough to treat a Kindle gently. My son (who is three) is quite gentle with my iPod touch, because he knows if he isn't: no more "Bug's Life".

remove the drm using calibre, it takes a minute and allows you to read books from amazon using ibooks.

I wasn't aware of that. I like iBooks a lot better than the kindle app for the iPad. Need to try that. Thanks.

Kindle has a loan feature that lets you loan the book to anyone for 14 days or so.

Once ever. For some books.

3. You can't read ebooks in the bath (yet)

You can't?

Sure you can; I used mine in the tub (a Sony Reader) all the time with no I'll effects. If you're paranoid though just throw the reader into a ziploc bag to protect it.