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Four+ years later I haven't ever felt the need to upgrade to anything more shiny or expensive. I've probably used it every single day since getting it, and it's never given me a lick of bother, and does everything I would ever want/need it do. If/when it eventually dies on me, I would probably go for another entry level model and use the extra ££s saved over the Paperwhite to buy a nice sturdy case.
I am not sure what the concern about being tied to Amazon is. There is a massive library. I tend to pick up the daily deals at £0.99. There is enough free stuff that you could read for a good part of your life and not pay anything.
I still love physical books and see the kindle as a replacement for paperbacks. I do not think the kindle can replace books with good photography, text books or music books, where you might want to scribble notes.
In that context, whether or not I own the content on kindle, only matters if I wanted to leave a load of sci fi novels in my will.
I do miss passing a paperback on to someone who might really enjoy the book.
My wife's 1st Gen Kindle finally bit the dust a couple of weeks ago on holiday (final day thankfully). That must be a decade old so it's done really well.
I use a fourth generation kindle that I picked up for £14 from CEX over a year ago and it's brilliant. I've noticed however that they seem to have gone up dramatically in price s/h.
The pricier Amazon options just didn't seem worth it.