512 Pixels points to the 'Kindle Fire' story over at TechCrunch.
Fully customized Android, $250-300, shipping second week of November, Amazon app store, etc, etc. Could be cool for sure, definitely interesting.
A coworker pointed me to the Pixel Qi display technology and lamented Amazon not utilizing this in their tablet. Pixel Qi allows switching from "normal" LCD mode to a low power, sunlight readable setup (sort of like e-ink, but not). Unfortunately while they did get an investment from 3M recently, I haven't heard of them. The tech looks awesome though, hopefully we'll see it utilized in some e-reader/tablet hybrids soon.