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Here's a thought. The complaint seems to be that Amazon has access to your device (because it makes the experience much better) and that could invade your privacy. So, for someone interested, when the wifi-only K3 arrived, deregister it, so it doesn't belong to anyone, connect it to wifi, and see if you can download free books, etc. If so, then the wifi only kindle is no different from the bebook mentioned above. Yes, you will miss out on the Amazon experience, but you will retain your privacy and you can read any non-DRMed mobi or text book out there.
Once you are tied to a store (Amazon/Sony/Barnes&Noble/etc) they will absolutely keep track of what you buy. That's just good marketing. I'm not sure if the bookstores have installed software to actually get a directory listing of what you have on the device. After all, they already know what they've pushed, so they don't need it for that. I don't think it would buy them anything to do that (from a 'I want to sell books' perspective).
As for personal data. Amazon reading it is much less of an issue than the fact that the kindle doesn't have a lock, so if you lose your device, or its stolen, someone else will have all of your info, so I wouldn't store anything on the kindle I wasn't willing to have the whole world see.
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