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I now have the information so I'll update this post
1) Login to kobo's website and remove your CC or whatever payment method you have in place. You can leave the address since without a valid CC it wont matter, the thief can't see your address from the device.
2) Call Kobo. They can migrate your library to a new account. You can then deactivate your old account through Kobo's website which will prevent them from
a) Updating your Kobo library
b) Synching your library between devices
c) Buying new books from Kobo
d) Downloading -new- copies of your Kobo books
So they'll have whatever is on the device. I'm not sure what will happen if they try and sync, if it just wont do anything or if it'll actually wipe the device of ebooks. But anything beyond reading what is on the device will be impossible for them.
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