ahhh....that explains the strange happenings on our K1s.
My mom reported trying to start books and them opening to the middle. She said "I guess we can't read books at the same time" and I said "Yes, we can".
They should have mentioned this to K1 users when they pushed the upgrade...its not like the feature is that noticeable on the Manage Your Kindle page...in fact, I had to look for it twice even after seeing it mentioned here.
I also think rolling it out with the default to "On" was a bad idea since it wasn't there before and I think most people with multiple Kindles have multiple users.
Anyway, mystery solved