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I think the web browser was thrown in as nice feature because it was easy to add since they had the 3G radio built in. It clearly is not intended to be one of the main selling features of the Kindle. E-ink displays don't lend themselves to displaying video and the browser doesn't handle pop-ups or audio. It's OK for text based sites.
The mp3 player is useful for listening to audio books and music. mp3 playback was probably added because it was easy once they decided to add hardware and software to support speech synthesis.
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