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When you look in the ALL tab, you're seeing all of your books, both those on the device, and those on your account but not downloaded to the device.
When you look in the DOWNLOADED tab, you only see those books that are actually on the device.
To remove a book from a device, long-touch the book, and select Remove from Device from the menu that appears.
If you want a book to be gone from your account, completely, go to your Content and Device Page on the Amazon site, tap the [...] to the left of the book, and select DELETE. You'll be warned that it is a permenant action, click OK or YES to throw the book away.
Once deleted from your account, you'll need to also delete it from the device, if you have not already done so. Then sync. Sometimes it takes a while for the image of the book to actually disappear from the device.
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