I can understand the frustration with this, but I think Amazon designed the Kindle for a certain sort of user. Someone that mostly uses it to buy a book or two at a time from Amazon.
At least, that's who they want to buy the Kindle, since they probably are selling the hardware close to cost with the idea of making it back on the books (the razor and blade model)
From that POV, the current system works decently enough.
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