Regarding storing the books on Amazon's servers -- they're doing this for movies on their "Amazon Unbox" service (basically you can rent or buy movies direct to your Tivo or other DVR if it's networked, it's a pretty neat service, but finding titles is a serious pain in the sitter-downer). I'm guessing that folks are embracing the model enough on videos that Amazon thinks it's worth trying with books. They probably have a point -- the average person doesn't want to have to keep track of such details, and they're inoculated to it by the iTunes effect.