Huffington Post's Dave Burdick reports that the announcement is likely to be about the big-screen Kindle's "arrival at universities."
While mulling the more lucrative margins of textbook sales, he quotes the New York Times article today:
As early as this week, according to people briefed on the online retailer's plans, Amazon will introduce a larger version of its Kindle wireless device tailored for displaying newspapers, magazines and perhaps textbooks ...Some would hope it also entails some improvements on the Kindle 2 requested, but there's been no mention of that so far.
In total, six universities are involved in the project, according to people briefed on the matter. They are Case Western, Pace University, Princeton University, Reed College, Darden School at the University of Virginia, and Arizona State University.
Also, pricing will be interesting. Other big-screen units planned and some already available (iRex) but without wireless, search capabilities, and inline-dictionaries (all strengths of Amazon's Kindles) are charging from $600 to $1000+. Will newspapers subsidize some of the cost for their readers, when they are already losing millions per year?
The announcement timing is intriguing seeing that Apple's June announcement had been getting the headlines in that their hoped-for MediaPad (no hard news on that yet) might be released via Verizon, with a wished-for larger screen and wider range of offerings but only via WiFi vs Amazon's always "On" wireless.
And then there is EFD or Electronic Fluid Display (Electrofluidic Display Technology, involving color) on the horizon but still very much in development including improving the contrast and then getting it integrated into actual devices.  But apparently it could support the Kindle someday.
UPDATE: OTHER RUMORS:
ENGADGET posted some info from the Wall Street Journal as well as the NYTimes and is offering preview photos, though they ask if it will be 9.7" units, so the photos may be iffy.
The one on the right looks out of proportion, with the current unit 8" and the new one said to be 9.7"...
SeekingAlpha reminds us that Engadget pointed out the NYTimes is lowering its subscription price from $14 to $10 (that would include Sundays and many have requested this before subscribing - so natural customer resistance has an effect). They say in order for amazon to keep the price close, for the larger screen, they'd have to cut out something like wireless, but the college communities are filled with wi-fi spots, so wireless is superfluous there. WiFi feature rather than 24/7 Wireless? They add Amazon seems to be doing a front-run around the rumored iPod mediapad/tablet, with the spiffed up web browser and larger screen but still with a [smaller] keyboard.
The Moderate Voice has an interesting set of thoughts. Below are ways to Share this post if you'd like others to see it.
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