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You certainly can register the Nook from within China. I did what you did originally and had my dad in the US buy and register my Nook Color before shipping it to me in the US. He also rooted it for me. But recently I've had problems with it, and when it finally crashed I reset it to factory settings. I was able, through a regular wifi connection, to re-register my Nook. The only problem I've had is that, for some reason, China Unicom requires a password and login to get on our wifi every time. So, I can't use my home internet on my nook. I can, however, use it on other wifi connections.
I haven't tried buying books because I have a large collection already. I have a VPN (Express VPN) and I use it to ,make purchases all the time, so, as others have said, buying books is not a problem.
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