The third version of Amazon’s Kindle will be shipping out on June 26, 2009. It is called the Kindle DX and reviewers are complaining that it is not that different from the Kindle 2 and that there is perhaps just not enough bang for your buck – or, make that your $498 bucks.

True, the DX has a bigger screen (9.7 ” diagonal compared to 6″), making the viewing area about the same as a hardcover book. This increases the weight of the device (now 18.9 oz). The storage capacity is larger, but as Rob Pegoraro points out in his Washington Post article (G1, 6/21/09), who really needs to carry 3,500 books around at one time?

Amazon is still having some issues with displaying images. Apparently a photo-negative image flashes on the screen before the real image displays, and we’re stuck with the 16 shades of gray.

I’ll admit that the Kindle Store’s 307,420 titles are impressive. Something new is that three newspapers: The Washington Post, The Boston Globe and The New York Times will offer a discounted DX to their readers who subscribe to their Kindle editions. However, there is a catch; the offer is limited to customers outside of the papers’ subscription area. For instance, The Washington Post’s offer will be limited to subscribers in the Baltimore area.

Cost is my main grumble about the Kindle. For a device that does just one thing, that’s pretty expensive. Downloads of books for the Kindle don’t represent any significant savings (most are about $10) over buying print copies. And while it is certainly convenient for Amazon that readers cannot loan or resell a book, I personally would find that a drawback.

I am much more intrigued by Apple’s iTunes model. On the App Store, not only can you find games, music, podcasts, and other applications as well as books, most apps are under $5. And the iPhone itself is a fraction of the cost of the Kindle!

In conclusion, before I would spend close to $500 on a digital device to read books, I’d want to be able to use it for other things as well. I guess I am not convinced yet.