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I agree that it's a great idea. However, I doubt that you will get any support from Amazon, and the Kindle probably is not the best bet for this.
You would be largely tied to using only those texts that Amazon chose to make available, further, if any of the students were to place "illegal material," and by that I mean DRM protected content that was not intended for the Kindle, on the Kindle, then the school might be held liable. And, yes, Amazon can and, according to the license agreement, has the right to download information through Whispernet regarding the content stored on the device.
So, while I think it's a great idea for students to be introduced to ebooks, and to learn to use them as a learning tool .... it doesn't appear that Amazon sees the Kindle as anything more than a way for them to make more money.
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