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I have the same concerns as knc1 - in fact I found the idea of giant corporations reading over my shoulder with every page turn so disturbing that it caused me to take the risk of jailbreaking my brand new Kindle and running a dodgy anti-logging script. Keeping wifi off would be another solution. However I still might want to use wifi from time to time (particularly since I plan to travel with just my Kindle on occasion): to buy books while I'm out and about, to send documents to myself through amazon's document converter, and to use it as an emergency web browser (which was part of my reasoning in buying the device). But if I'm understanding the logging process correctly, if all my activity is being logged it can be requested by Amazon and sent in a single package the next time wifi is on, not even a very big package, making all my care in keeping it turned off useless.
Which suggests another approach to shielding kindle activity from Amazon: before turning on wifi, the owner logs in via sshnet and deletes the gzipped logs in /var/local/logs. It's cumbersome, but it's simple, and maybe low risk? It seems to me that since it's not modifying script files or config files it shouldn't break anything, but I've been very wrong before...
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