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That's right - it's an application which allows you to read Kindle books on the iPhone and iPod Touch - ie, it's a version of the MobiPocket Reader for that device. You probably won't be able to read the books on the Mac - there has never been a Mac version of the Mobi Reader.
Removing DRM, though, and converting to Sony format is a different question entirely. There's no "technical" issue with doing it but, in the US, there are major legal issues with doing so.
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