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I think it is correct that AZW files are locked to a single Kindle, but I agree that Kindles can share an account and therefore share e-books. This is a significantly different kind of sharing that the "any 4 PIDs" approach that MobiPocket takes, but it might be a preferred by parents who want to monitor what their kids read (for example).
In any case, I have removed the "single Kindle" reference in the original post.
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