I don't have a problem with amazon sending out the letter and advising everyone that the book was sold improperly and they should delete it to abide by the law.
However, I have a big problem with Amazon being able to just wirelessly yank a book out of my reader, with or without notice. You really want Amazon tracking every book you put on your reader? I would not want anyone to just be able to log on to their computer and look and see exactly what I am reading without having to ask my permission. Not Cool!!