From the Tools of Change for Publishing blog:
“The move comes a week after Amazon started shipping the updated version of its Kindle reading device. It signals that the company may be more interested in becoming the pre-eminent retailer of e-books than in being the top manufacturer of reading devices.”
Amazon is positioning the iPhone app as a gap filler: nibble on book content while waiting at the airport, in line, at a restaurant, etc., but settle in for deep reading with the original Kindle (or, presumably, the printed edition). Toward that end, the Times says Amazon is using a bookmark feature that keeps a reader’s spot as they switch devices.
For those interested in the Kindle 2, you can also see the Kindle 2 here.