There's been a surge in the Amazon tablet rumors over the past few days. The most recent rumor is that Amazon will stream content to the tablet. This rumor is actually half true. Amazon will be streaming content, but there is no tablet involved.
You're not going to believe this, and I really hope you're sitting down. I've seen pictures of Amazon's prototype tablet, and it only has a 5" screen. The screen is so small because it's not the main viewing method. There's a new technology integrated into the device, and it will change everything.
Amazon has been experimenting with direct transmission to the brain. Yes, who needs a screen when you can simply beam the content into your head?
Update: I see that I forgot to mention ebooks. I asked and yes, the new device will support Kindle ebooks. But they've encountered a few problems with the enhanced formats. the projection technology for text doesn't have adequate signal control to handle embedded audio and video. Several beta testers reported excruciating headaches, so there's a good chance that the enhanced content will be disabled.
Second Update: No, I cannot post the pictures. It looks vaguely like a 5" handheld, and I wasn't shown any other component. I'm not sure how the direct to brain transmission is done.