They could probably work deals with Boingo, AT&T, and other WiFi providers to partially close the gap but for less cash.
I think Amazon needs to view the Kindle as a loss leader–the shaver, and the books as the blades. I think the 3G modem will sell more books, but I have no idea how much extra that 3G radio costs vs. Given the slow refresh rates, and the free 3G, it doesn’t seem likely a real web browser will be forthcoming, so like you say an RSS reader (for free over Wifi, pay some fee for 3G) seems like the best fit. I love my kindle, I have never bought a book through it, I buy books (lots and lots of them) through my computer as it way easier to shop that way.
Tablet computer - wikipedia, free encyclopedia, A tablet computer, commonly shortened to tablet, is a mobile computer with a touchscreen display, circuitry, and battery in a single device.
Mac - apple, You’ll get wireless beats headphones when you buy an eligible mac, ipad, or iphone for college.

Hp laptop power cord safety recall replacement - hp, Some power cords for hp and compaq and mini notebook computers sold from september 2010 through june 2012 may be part of voluntary recall and replacement program. Apple, Apple leads the world in innovation with iphone, ipad, mac, apple watch, ios, os x, watchos and more. Theinquirer - news, reviews opinion tech buffs, Theinquirer publishes daily news, reviews on the latest gadgets and devices, and inqdepth articles for tech buffs and hobbyists.. Hp touchpad 6 8 weeks additional shipments, Hp needs 6-8 weeks to ship additional touchpads, according to a leaked email sent to customers.
But should they drop the price to $99 in a stripped down model, the response would  be overwhelming. I’m saying offer an introductory priced model in addition to more full featured units. If syncing software is solid (or I help with WiFi setup), she’d have no problem with a non-3G Kindle.

Although, $129 might be a more realistic price point to cover engineering, hardware, marketing, etc while making a few bucks on the front end. So once again, if Amazon is listening, its the weight of the kindle that makes it a superior choice for reading, so making a lighter version would be even better.
Macworld Editor Jason Snell also suggests possibly dropping the keyboard for a more compact form.

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