The point is, the download needs to stay as a *.gz file. The mac automagically unpacks the file for you, and THAT'S THE WRONG BEHAVIOR in this case. If you change that "safe download" option (I'm not real familiar with it, despite being a maccy myself), you could re-download, and then turn the option back on again. 99% of other instances won't be bothered by the automatic unpacking.
You need to put a *.gz file into the kindle directory.
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