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Yes you can only use the ebook if you have a way of reading the Amazons e-books. For people with one of the many apps or a Kindle this is not a problem.
It is not a roundabout way of doing anything. They are clear that the person needs to have a way of reading the e-book that is being sent. You can download an app if you want to read the book and don't own a Kindle or you can convert the book into a gift certificate.
I own a Kindle and it was great getting my books as personal gifts and not a gift card.
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