Yes, Amazon has launched its new, larger Kindle and the Wall Street Journal has the story here. It's called the Kindle DX and will cost $489. It has a 9.7-inch screen, about a third larger that the current Kindle, making it better suited for reading newspapers and academic textbooks.
Look out, textbook publishers. The New York Times, Boston Globe and Washington Post Co.'s are going to test-offer the new Kindle at a reduced rate for long-term subscribers.
Whether or not libraries can lend Kindles isn't clear, according to a recent article in Library Journal.