The vendor of the book is MobiPocket. They will encode a book for any device with a legitimate MobiPocket PID. This tool simply supplies such a PID. It is tied to a specific Kindle, so it's not reducing the "strength" of the DRM on the file at all.
This IS a breach of the Kindle Terms of Service, absolutely. Breaching that is not breaking either criminal or civil law. Amazon would be perfectly within their rights to prevent you from using the Kindle service as a result of your violation of the TOS, I suspect, should they wish to do so. That is something that each individual Kindle owner has to decide whether or not to risk.
Perhaps we had better just "agree to differ" about this. I do not own a Kindle, but welcome this tool as a means of leveraging the usage of previously-purchased Mobi DRM content on it. That can only be good for Kindle sales.
Others may of course disagree. That's fine.
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