Originally Posted by Lord Mahoney
Watermarks are actually worse because the hacking/cracking communities will be less motivated to crack a DRM system that's not as aggressive as a full-blown copy lock.
It depends on the annoyance level of the watermarks. If they're visible during actual reading, I expect tools will follow before long to remove it. If they're just on the first set of copyright pages in visible form and then hidden in the rest of the book, there'd be little incentive to make removal tools although they may still be made by someone just because they can.
As Harry says though, that's really a good thing. There's less need to remove watermarks unlike DRM, since you can still format shift and use the content as needed.
Regarding having your kindle stolen, hopefully the police report will be sufficient evidence should pirated copies start to show up. HOWEVER, it's clearly important that any identifying information is not PERSONAL. The water mark should be an ID and at the very most your name on the first page. There should be no email, no postal address, no credit card numbers, nothing of that kind, because ebooks will be lost/stolen.