Kindle 3 should be an iPhone app

Amazon today announced the new Kindle 2 ($259) ($359) the successor to its a purpose-built eBook reader. The update is thinner, lighter, has more storage, a better display, better button placement and will be available on 24 February 2009 according to Amazon.

Engadget has a posted a hands-on review with video of the K2 in action.

The new dictionary pop up (it brings up your definition on the bottom of the screen as you're scrolling through text) is a huge win.

Kindle 1 owners that place their Kindle 2 order by midnight PST on 10 February 2009 (tomorrow!) will receive "first priority" on the new device.

Instead of carrying around more proprietary hardware (with a black and white screen, no less) I can't help but think that the Kindle 3 will be an iPhone app. That's if Apple doesn't beat Amazon to it and add a books section on the iTunes Store. Apple already sells audio books, after all. And let's not forget about the competition from Google Books.

Kindle owners, are you upgrading?