I think Josieb1's question--how to thoroughly unhack a kindle so Amazon engineers can't detect it was ever hacked (which could void its warranty)--hasn't been properly answered.
I'm assuming the kindle's flash memory retains the contents of deleted files and folders until that section of the memory is overwritten with other data. If so, another needed step after "deleting" non-Amazon files & folders is to overwrite the newly available memory with data that will appear innocuous to Amazon's engineers. For example, ebooks that are in the public domain.
I'll also assume the kindle uses a wear-leveling technique to preserve the writability of the flash memory. If so, a way to ensure the freed memory is overwritten is to (temporarily) fill the kindle with ebooks, so that no free space remains.
I don't know much about kindles, so if I'm wrong I hope someone will contradict me.
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