Kevin Kelly (the former Wired editor) has noticed something rather odd: Kindle prices have been dropping at a steady rate since Feb 09. He concludes that the Kindle will be free by November this year:

… I’ve mentioned this forecast to all kinds of folks. In August, 2010 I had the chance to point it out to Jeff Bezos, CEO of Amazon. He merely smiled and said, “Oh, you noticed that!” And then smiled again.

He suggests that Amazon would introduce the cellphone model: a free Kindle if you buy X amount of ebooks.