If memory serves me right, when Clarence Thomas was being scrutinized for the Supreme Court, an issue arose because rental records from a video store showed he had rented pornographic material.
I am fairly convinced the list of readings, websites, magazines, newspapers we read is being stored and is accessible and accessed by government agencies. I remember some article not long ago about how many bookstores had been required to hand over information on credit-card purchases under the Patriot Act.... and the number had lots of zeros after it.
Yes, I think it is safe to assume Amazon can see what's on your Kindle. And yes, I think it's necessary to assume that some agency can access that.
Could it be used to track pirating? Why not? I mean, when I went to college, we all thought using Napster over a school's network was fine because that info was never going to be handed over. Then lots of people got bills from RIAA, threatening lawsuits. Would this be so different?
I do also think honest individuals run the risk of being hurt by government agencies. It happens. Here (in the US) less than in most of the rest of the world. To the point that it is a very, very, unlikely event. Some people walk around with gloves and face-masks not to get Ebola. Same thing. Are they correct in saying that it's possible to get Ebola? Yes. We still deem them 'insane'. Because we realize that some risk is a fact of life. And that some risks have to be ignored. Otherwise, you stop eating because your food might be poisoned, and starve.
Just my 2cp.