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Amazon neither knows nor cares what personal documents you send to your Kindle. I'm afraid I'm somewhat at a loss to understand what "invasion of privacy" issues are involved here at all. Apologies if I'm being more than usually dense.
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I don't disagree with you, I just see potential for abuse. If amazon can do it, it is probably a matter of time before others can as well.
Why would they bother? Because they can.
It would not stop me from buying a kindle if I really wanted one. I bought my mother one, and even emailed an ebook to it. Still I am kind of glad she prefers to keep her wireless turned off. Not totally paranoid, but just a smidgeon
Helen