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Oh yes they have to be free!
I think what most people don't realise is that ebooks are often free for a short while to help sales, it's not just the classics, so if you read a reasonable range and do not need to read the best promoted book of the moment, you can feed your reading hunger full time.
Check back every few weeks, you will see the same old books with a few new ones interspersed each time.
I couldn't believe that it had been over a year since first posting on this thread. My then 11 year old was 13 last week and now has a Kindle Fire (joint birthday present from me, dad and grandparents). I check for free books most days, and started to get free books for my son a month before his birthday, so he had plenty of choice. He knows I won't be paying for ebooks. I do still buy some printed books, though. At school, he has to carry his current reading material in his bag and teachers stop the pupils at random to ask about the storyline. He's currently reading Itch by Simon Mayo, and his next book is Soldier Dog. Both are printed copies as I won't allow him to take his Kindle to school. Having access to both formats gives a wide range of fiction and nonfiction.
The Kindle Fire is also a tablet for games, Internet, etc, which I didn't realise before buying.