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I'd guess that most people interpret (correctly or not) doing anything with a device that they would have done with a paper book as being just fine.
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I don't see it that way. The device itself, yes. I can give it away, or sell it, as its value allows. But not loaded with books.
But I see nothing unethical about loaning a device, with books downloaded, to a friend or family member. As it happens, I've only loaned a Kindle to a friend once, a few years ago. That friend actually used the device (before she had a smart phone) to put PDFs with travel info on them, so she had easy access to the info without getting her laptop out. I think she read a book or two as well during her vacation.
The terms Amazon has set seem to allow for several devices on one account having access to the books on that account. My elderly mother has one of my older Paperwhites. I suppose if she had an Amazon account, I could use the Family Share option. But she doesn't shop online or have a computer etc. Ethically, I see no different between her just using a device on my account and her having access via the Family Share option.
My husband and I use the same account, so no family share is needed. My DIL has an old Fire still registered to my account, but last time I looked it only had a couple of public domain books downloaded, so I don't see it as an issue at all. If pressed by Amazon, I'd just use the Family Share option, which would give her full access to all my books. Which she already has. So, I don't see the point.