<i>(Short attention span version: Amazon is spooked.)</i><p>I see why: I just bought a Kindle because I'm in English grad school: <a href="http://jseliger.com/2010/01/18/buying-a-kindle-why-didnt-i-think-of-this-last-semester" rel="nofollow">http://jseliger.com/2010/01/18/buying-a-kindle-why-didnt-i-t...</a> and realize that I'd rather have a Kindle than buy another ~$200 worth of Nortons and so forth. Two days of using it shows what the Kindle is missing: iTunes for documents, especially because .pdfs still don't play nicely on the Kindle. The closest substitute I've found is Calibre at <a href="http://calibre-ebook.com" rel="nofollow">http://calibre-ebook.com</a> . It's not good enough or well-thought out enough and probably never will be. I'm tempted to start trying to produce an iTunes replacement, but I'm not good enough too.<p>This leaves a very wide hole for Apple, even leaving aside the hardware issue.