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I actually called Kindle support on this question because the new Kindle I just ordered will be my 7th device counting portable apps.
The person I talked to said that most books are limited to being on 6 devices simultaneously, but that deleting them off the older devices would free up those licenses, and that de-registering a device would free up ALL of its licences. I hope that is true because I tend to carry most of my books around with me on the device in my bag.
I will de-register my older Kindle 2 when I get the new one, and give it to my niece so she can buy books on her own account.
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