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I think it is good advice - no matter where you buy your books from to back them up yourself. Don't rely on any retailer, including Amazon, to protect your interests.
I have no doubt that with the wireless on Amazon probably has the capability to manipulate Kindle files. However, I'm guessing from the estimates I've read there are probably around 7 or 8 million Kindles out there by now so I'm really doubting that they find the contents of my particular Kindle all that fascinating in a super secret spy let's see what our customers are up to kind of way.
I'm just not that unique.
But ... nobody will ever care about keeping your possessions as safe as you yourself do and I find it much more reassuring to know that I'll never have to call some Customer Service schmuck and beg for my book. I will always have my books.
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