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The mobidedrm tool does seem to allow Kindle AZW e-books to be read by MobiPocket Reader software and (all) MOBI e-books to be read on the Kindle.
However, it may not allow format shifting because the MOBI "exploder" mobi2html does not work on files that use "Mobipocket hufdif compression" (mobigen -c2). Most DRM-free MOBI files use simple compression, but it is unknown what fraction of DRM-laden files use hufdif.
It would probably be ok for mobi2html to add support for hufdif (particularly since there are some DRM-free MOBIs using it), but first someone has to work out how to decompress such files.
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