It's not "circumventing DRM". The Kindle uses Mobipocket DRM; this is merely a tool to allow you to add the Kindle as one of the (up to four) devices that Mobi DRM allows a book to be encoded for. The book is still DRM protected and can't be read on any unauthorised device.
Amazon own Mobipocket. They still get your money whether you buy your books from Amazon directly or from MobiPocket. The benefit of buying from MobiPocket is that you can also read your books on any of the other devices which support the Mobi format.
This tool will encourage me to buy a Kindle if and when it's released in Europe, because it will allow me to preserve my investment in DRM-protected Mobi books.
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