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Thankfully Amazon has managed to make the Kindle so uncool (and rightfully so - because their corporate "content policies" were so outrageous), that nowadays people feel the need to excuse themselves in public, when they read on a Kindle in any circumstance other than on a vacation.
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Nonsense.
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Amazon deleted books out of "your cloud", when they felt, they could be legally preassured to pay some licensing fees, you know - the backup solution of your dreams...
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Is this a reference to that ONE time an ebook was sold by someone who didn't have the right to do so? Didn't Amazon pay everyone $30 for their trouble, and also promise to not remove a book from user's devices if it happened again?