No. You are thinking of the $199 Kindle Fire, which is really a tablet, not an e-reader.If I only wanted a Kindle for reading I'd agree with you, but as a kindle that plays movies, And stores some data in the cloud (minimizing the need for external/massive amount of internal memory) and access to the thousands of android apps on the amazon market it's a pretty nice package.
Pretty sure there's an audio jack on the bottom next to the power/standby button... They're promoting access to Amazon's video library.
The $79 Kindle that this thread is about cannot play movies and does not have the audio jack!