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I ditto Daffy4U. I really enjoy my Kindle and have been a good customer of Amazon and a free good-will-embassador. While KindlePID allows me to use public library books, I also regularly purchase books from Amazon and my family knew the perfect gift for me was an Amazon gift certificate. This will no longer be the case.
My purchased ebooks will come from other sources whenever possible and my friends looking at ereaders will be pointed in other directions where they have the freedom to purchase ebooks from competitive sources, as they please.
This may be one of the really poor business decisions Amazon has made. It will certainly not further the cause for ereader technology and hopefully Amazon will feel the backlash on their bottom line.
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