My older Kindle is about 2 years old and it is the model with keyboard. The new one is the Kindle Fire HD 8.9.
As you can see in picture #1, you have color! Yay! Plus Kindle Fire 8.9 is much larger overall. On the old Kindle, the screen is 5 X 31/2. The Kindle Fire is 8 X 41/2.
Okay, so what I LOVE most is the touch screen. No more clicking little buttons to change pages or punching home and menu. I never really liked reading on my Kindle because I thought it was such a pain to have to go to that stupid menu screen. No more of that on the Kindle Fire. Just tap the screen for the menu stuff. You see the orange percentage bar at the bottom? All you have to do is tap it wherever you want to go and you are there! I was like OMG! Also on the right hand corner is "Home". Just tap there to go to your book cloud. The color covers look great and just tap on a cover to open the book. Also if the book has a table of contents, all you do is tap on the chapter number to go there and to change the page, just swipe and keep reading.
Of course, the Kindle Fire HD is a tablet. You can check your email, Tweet and watch movies. I watched some of Thor the other night and it does have a great picture. No problems with the streaming. The processing speed is great. But I will primarily use it as a reader, I think.
Price-wise, it is more expensive than the other models. There is a 7" Kindle Fire HD that is very nice. I have seen that model. There is about a $100 price difference and I think the screen size of the 8.9 is worth the price difference. It is like reading a trade-size book. I like the larger screen. I did get a bundle package which included a bubble-free screen protector and a case.
If you are considering buying a Kindle, I would say to go with one of the Kindle Fire models. I think you will be a lot happier with the product. I have not seen the Kindle Paperwhite, which is a reader only. I had considered it because it is a touch model and I prefer a white screen, but a friend convinced me to get the Kindle Fire and I don't have any regrets.