Are Amazon getting a Kindle Tablet ready for later this year?

I read this yesterday at TUAW and started to think about the Kindle and if I thought that Amazon could make something like that into a real competitor for the iPad. I think they could if they were really careful about how it was positioned so as not to alienate their existing loyal Kindle users and also to set it at a price point that fits both with the current Kindle and hits way below the iPad's pricing.

As for audio / music etc. I doubt that that's high on their agenda, but I'm happy to be surprised.