They're still at the head of the price curve if you look at the price that matters: $69. you don't really need a touch screen, a glow light, and the ads are not a big deal. Kindle is still the cheapest real player in the e-reader market.

I probably won't be upgrading from my 3rd-gen kindle either, but somehow i doubt amazon cares. I'm sure they make more off of book purchases from 3-year-old kindles than they do from the sale of new hardware. They want to sell kindles to as many people as they can, but once you've got a kindle all they need you to do is keep buying content.