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The script doesn't break DRM. It allows Mobipocket DRM to work on the Kindle, since the Kindle is essentially a crippled Mobipocket device. The DRM is still intact.
For example, Mobi e-books checked out from my local library can be enabled for the Kindle using the two scripts.
I think the key issue is that Amazon is invoking the DMCA to protect its business interest, not a copyright. If Amazon's business model revolves around a subsidized Kindle to sell their books, that's their choice. They still have no business telling me I cannot put library books on my Kindle.
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