Alright. First there is: Use of Digital Content.
You are not allowed to use any Digital Content not authorized by Amazon on the device:
Notice that in the Digital Store/Kindle Store section that Amazon get to pick how this is defined..."from time to time.
You are not allowed to "augment" or "circumvent" any part of the Kindle, the Device or the Software. Note that you are also not allowed to "substitute" any digital rights management functionality of the Device or Software, either...
...and that is exactly what is going on.
Defined any way you please, this is overriding a specific built-in part of the "Service" as well as the "Software".
The Kindle doesn't allow for reading DRM Mobi. Its NOT ALLOWED. Amazon made it clear that this was not allowed by *not* having them work, didn't they? Further they changed the extension and tweaked the internals of mobi files. This was not a bug or an oversight on Amazon's part; it was a conscious act.
The Kindle is allowed to read/display un-DRM'd mobi files. These ain't them
The usage of these transformed files is as such, a violation of these Terms in both spirit and letter.
Also, because the DMCA is such a shoddy law, it runs afoul of this too, and here is why.
It has language that forbids not just decryption, but circumvention of a drm system in and of itself. This tools facilitates unauthorized use of unauthorized content.
"Fair use" has nothing to do with it. Many people figured out awhile ago to allow people to actually exercise their fair use rights, in the face of the DMCA they have to violate the law.
That's what makes it so funny in an "uncomfortable laugh" kind of way: you'd be NOT violating the Amazon and Kindle TOS if you actually stripped the drm and made the things straight .mobi, as the Kindle has no restrictions on these.
Of course, doing that, you violate the TOS of whomever you bought it from, and the law. *NOICE* *SHWEET*
Welcome to a new kind of dumb
I will call up Amazon tomorrow and ask them what they think