It's an exceptionally odd decision, but planned for approx. a year now.
- First they stopped allowing download of purchased books for cable-transfer to kindle in 2025.
- Then they amped up their effort to avoid jailbreaking by suddenly releasing more firmware updates than before.
- Now they stopped supporting a wide range of kindles.
Amazon obviously assumes that they sufficiently killed the competition so they don't need to worry about customers leaving.
As for me, I managed to exit on-time, applied a jailbreak on my kindle touch and now buy my books elsewhere...
Too bad, I remember when kindles came with a free 3g connection and web browser.