Comparing the various Kindles now on offer
The new white-paper back-lit Kindle would seem to be an advance on this, although it is only available as an import in the UK.
Whilst it would be nice to have colour the Kindle Fire presumably suffers from the same problem as all tablets, laptops and desktops, namely that it can't be read in bright sunlight.
Whilst pricing of its products is very competitive it seems to me that there is a danger in having too much variety. Apple's great strength under Steve Jobs was in keeping the number of products to the minimum, giving enormous attention to detail and making the product as user-friendly as possible. Time will tell if this strategy will continue following Steve's death.
So what I am suggesting is that Amazon should concentrate all its fire on producing a product that uses the e-ink technology with colour and back-lighting such that it could be read in bright sunlight. That would be a real winner.