I like to point out that the idea that there are too many kindles out there and it'd be too much data to keep track of is unsound. Twitter deals with over 50 new millions tweets per day, and more every day, and Twitter does not even have a business model! Amazon actually have a side business of providing server and bandwidth for other companies. And the amount of metadata they would have to send per device to keep track of everything you put on there is really not much at all, like 200 bytes per book? So the only question is is it something they want to be CAUGHT doing.
There will be a backlash for sure, but like so many privacy brouhahas, it will probably just blow over and people will continue to use the service. Just ask Facebook
