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I think that if an account is closed because of a high count of returns, purchased content shouldn't be taken away.
Company has the right to choose their customers but it has no right to take away things you bought - it's plain stealing. It's the same as buying a lot of electronics from one store, returning one too many and when having the company come to your home and take away everything you bought without any compensation. Seriously?
It's all nice for the big companies to be able to sell licenses and not actual content. In a way it does make it renting music/books - even if you don't have to pay constantly for the same product. The product can be taken away from you for a number of reasons, you DON'T own it. You own it if you do some additional actions, like stripping DRM and saving a copy or whatever. I never did that since I never bought book with DRM.
So people who have no idea about DRM and similar are in worse position since they don't know they should back up their content (and apparently firstly you have to do an illegal action of removing DRM - not sure in which countries it's legal and not) and how to do that.
And you should be informed on what terms you have broken. So you'd be able to defend yourself in case it is incorrect. Some mistake or something - it does happen, everyone can make a mistake. Now how can you be sure what you haven't done anything wrong when you don't even know what that wrong is? It's like not passing the exam and being told by your teacher you did something wrong - how will you learn if you aren't told what was wrong exactly. Or being arrested and told you did something illegal. People have the right to know why their rights, their possessions... were taken away.
As for returns for products you just didn't like. In my country law allows you to return it in 7 (I think) days if you bought on Internet because the product in a picture can look completely different than in real life and customer is a weaker side since seller always knows more, so legal system protects the weaker side. It is very important in new markets. I can assure you that without this guarantee I wouldn't buy some of the products (mostly unknown) and others in my country wouldn't because Internet stores are quite new here and people rather go to normal store and talk with a sales person, look at all products... People prefer to actually see the product/test when possible/etc. Even lower price might not entice.
As for returns being bad for company it has two sides. Sure it adds extra costs, but it add more clients. You sell more if people aren't afraid to buy. You see a product and you aren't sure if you will enjoy it, but if you know that you can return if you don't - you will buy it. And the chance that you will return is lower than you keeping it. Sometimes even if you aren't completely satisfied - you might not bother with the procedure.
Although buying a few similar products with an intention to return all except one is a little extreme especially if it will be impossible to put returned items on stock even on lower price. But company can still benefit by getting a new client. Unless that client constantly does that but I doubt anyone constantly buys a bunch of stuff with intention to keep only one. That is abuse.
Sorry for poor English
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