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Woop, and the big news (slightly expected) is that Amazon has released the Kindle 3: smaller and lighter than the Kindle 2 with better contrast and double the on-board storage. Wifi has also been included; there are in fact two models being released - one wifi-only for $139 and one 3g+wifi for $189. They've done away with the "nub" navigation stick on the front and gone to a directional pad, and repositioned the page forward/back buttons on either side to actually make a bit of sense now.
I figured something was up with the sudden sale on Kindle 2's and the release of the graphite DX. This one looks like a nice little bump up in features and design.
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