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I just noticed that at Smashwords, myself. It didn't used to do that (you could still download, but the listing was gone; now it's out of your library as well).
This has been an issue with ebooks at EVERY SELLER since day one - only Amazon has publicly committed that once purchased, your books will stay there, FOREVER. Even it it was in response to the 1984 fiasco, at least it's a step in the right direction.
A few have taken steps to try to get your library transferred (ereader, who migrated some of my original purchases from peanut; fictionwise "upgrade" a number of purchases to a different drm when they had to pull books, although they weren't able to get them all; Sony upgraded books from LRF to EPUB, for the most part), but I've had books disappear from a number of sites.
At least the ones I lost at Smashwords were mostly freebies (and I don't get much else at B&N, unless it's the only place I can find a book).
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