Move power button to where it's not easily pushed while reading in portrait mode. - Hold it upside down. (I put a post up about this.) Some apps won't flip to match the orientation, but Kindle, Nook, Silk, the Amazon store and Pulse all did.
Slow down the carousel. - Agreed. In the quest for making it super speedy looking, it's hard to use. That can be patched.
New Mail arrival alert - I don't use the email. That's what my phone is for.
Ability to group favorites on home screen. - You can rearrange them by tap-and-hold then dragging. Do you mean having folders or something?
Option for percent on battery charge in status bar. - Agreed, or not having to dig into the Device submenu. This can be patched.
My wishes:
* Move the speakers to the long edges in v.2 of the hardware since video is forced into landscape and have both speakers on the left side is dumb.
* Allow alternative e-reader software which is available in the Amazon App Store for every other Android device to be loaded on Fire. I shouldn't have to scrounge around for epub/mobi/comic reader apks when my other devices are free to get free apps.
* Allow the full Android Market and not just the limited Amazon version since updates are slower there. Probably not going to happen.
* The ability to cache the Prime streaming video to the device for offline viewing. (i.e. Load up a few episodes for the ride in or whatnot.) Since you can't Unbox this stuff on PC - probably due to licensing restrictions - I don't see this happening ever, though the fact it's a DRMed hunk of hardware which allows for the Kindle Lending Library means there's probably no technical reason preventing it. Problem is the hackers would probably find a way to get the content out of the box and once again piracy spoils everyone's fun.