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I wonder if the Itunes backup copies over the books
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As far as I can tell, iTunes is not in any way involved with the books. I suspect they are internal to the app and only accessible via wireless from Amazon.
The only way to "extract" them would probably be to hack the phone and app and even then you would very likely have to break the DRM as well. I cannot imagine Amazon (or the publishers) going along with anything that allowed the content to leave their control easily.