Amazon buys touchscreen startup Touchco, merging with Kindle division

In what we're hoping bodes well for future Kindle iterations, Amazon's pulled out its credit card and picked up New York-based startup Touchco, who specializes in -- you guessed it -- touchscreen technology. The company will be merged with Lab126, a.k.a. the Kindle hardware division. Here's why we're excited: the startup claims its interpolating force-sensitive resistance tech can be made completely transparent, works with color LCDs, and can detect "an unlimited number of simultaneous touch points" as well as distinguish between a finger and stylus. Current cost estimates put it at less than $10 per square foot, which The New York Times says is "considerably" less expensive than the iPad / iPhone screens. We're not expecting to see immediate results with this acquisition, but given the proliferation of touch in the latest batch of e-book readers, it'd be foolish of Amazon not to join in on the fun. Ready for the Kindle 3 rumor mill to start up again?