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Everybody has their own idea of right or wrong. In this case I think the only idea that matters is Amazon's and it's been my experience they really don't care as much about the principle as they care about the practical aspects of things.
I value Amazon and I would hate to lose access to them because I live in a rural area and don't have a car. So to protect myself when I was doing something that might (or might not) violate their terms of service I called and asked them if it was okay. They said sure, it's fine with them. Then I got nervous when accounts were being closed a couple years later so I called and asked them again. This time I was told not only that it's okay but that a lot of their employees do the same thing. Amazon didn't care so why should anyone else.
The issue in question was removing DRM from books I've bought from Amazon and sending the converted mobi file to my library, allowing me to use it on my many devices without worrying about the 6 device limit. Amazon doesn't care and as a result I don't care.
I currently have 7 Kindles, 3 Fires and 4 phones with Kindle apps that I read with. I'm the only one reading these books, with occasional exceptions when I loan a Kindle to a neighbor, something I did tell Amazon about. The problem is I like to rotate my devices so I put all the books I intend to read in the near future on each device. When I started sending in books as described above there was no way to determine which devices a book was on so I could remove the ones I don't need. Now Amazon's site let's me do that although it's still pretty tricky and time consuming. In those days I sometimes spent an hour or more figuring it all out before I could read a book on a particular device.
We buy Kindles. We own them. No-one in this forum can tell us what we're allowed to do with them.
Barry
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