Actually you
can back up AZW files, just copy from the kindle to a memory card or your computer. I have backed up all my DRM'd AZW files. So if Amazon goes belly-up tomorrow, I still have my stuff.
Also I
just don't get the Kindle vs Sony stuff. How is Kindle DRM any worse than Sony DRM?!?! I don't read a lot of DRM stuff anyway. Kindle
does read txt files and non-drm'd mobi files.
So yeah, you COULD buy a .lit file, break it, convert it and read it on a Sony, but you can do the same exact thing on a Kindle. You can back up Sony DRM files, you can back up Kindle DRM files. You can convert almost anything to a non-DRM Sony file AND you can convert almost anything to a non-DRM Kindle file.
Sony would
prefer you to buy only stuff from the Sony store. Amazon would
prefer you to only buy stuff from the Amazon store. You can but
you don't have to in both cases.
So I guess what I am saying is that I don't think you can argue that Sony DRM is better than Amazon DRM. And if you hate the DRM stuff, that's cool, but Sony prefers DRM just as much as Amazon prefers DRM.
Basically I think Sony and Kindle are the same thing except for the wireless and dictionary--I have both devices. I can see the arguments regarding looks, or which has prettier formatting--but the Sony DRM vs Amazon DRM is a moot point. They both want to "own" you.
People seem to be hating on the "amazon machine" but seriously, sony is the same way. I mean, I would think the Gen 3 and the Iliad are the winners when it comes to format wars. Saying that Sony's DRM policy is better than Amazon's DRM policy is just silly--the both suck if you hate DRM, they both are great if you love DRM.