This afternoon, my Kindle quietly accepted its update to software version 1.2. This is a minor software update, consisting of the new functionality that Leslie pointed out earlier.
Here are a few screenshots of things that have changed with this update:

Haven’t received Kindle software 1.2 yet?
Do not fear! The software update is being rolled out incrementally.
KindleBoards moderator Betsy the Quilter contacted Amazon support to see why her Kindle hadn’t been updated yet. The response (excerpted below) indicates that the 1.2 update is being rolled out automatically to Kindles over the next few days.
Greetings from the [...]