It appears that all signs are pointing to a larger version of the Kindle being announced this Wednesday. The NYT had reported that an announcement as early as this week could be made and then shortly after Amazon posted a notice that a press conference would be held on Wednesday, May 6 at 10:30 am ET.
Other than a larger screen not many details are known; it"s expected that the devices larger screen will make it more suited for newspaper reading. Currently the smaller screen inhibits the device from replacing the traditional newspaper.
If Amazon can create a device that does replace the newspaper in its entirety then they may have a huge hit on their hands. If any other new features will be unveiled is anyone"s guess but it wouldn"t make too much sense only because the Kindle 2 is only a few months old.