Just a few minutes ago I posted on the new Cruz T301 Android tablet. This tablet had one really interstinf feature: it ships with the Kindle android app. I didn't realize what that meant until after I hit the Publish button.
If Amazon had planned a Kindle tablet then they wouldn't have partnered with Velocity Micro.
One thing that makes this really interesting is that Amazon added the former CEO of Palm to their board of directors this week. The consensus is that Jon Rubenstein was brought on board to add his development experience to Amazon's tablet project. I don't think that's going to happen.
I'm going to take this one step further: Amazon canceled their tablet becuase they've heard rumors about a smaller iPad. A 7" iPad that costs $250 or $300 would drop the bottom out of the tablet market.