iptables is probably a good option here, yes. The rules are slightly wrong, though. First, the "ACCEPT" lines would never match since the "-j" jump to the DROP target is a final action. The DROP target should be jumped to after checking the more specific ACCEPT rules.
And then if they would match - it's very probable that the Kindle's wlan0 interface will have a local IP, so all outgoing connections would be allowed (-s is the "source" IP switch). You probably meant to allow connections _to_ the local network, which would be the "-d" flag instead of the "-s" flag. Although I can't really see why even local connections should be allowed. The DROP line would be sufficient.
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