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I haven't read all posts here but wouldn't the simple thing be to simply forget about shopping at Amazon? If they don't want you as a customer anymore so be it.
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Well sure, but that does not solve his Kindle issues. This makes me now want to be sure to back up all the books I have bought for the Kindle onto MY system by using their download to PC feature each time I buy a book. That way if they ban me at some point (not that I have reason to expect this - but neither did Ian), I do not lose that content because I trusted THEM to continue to provide access to my content.
I would do this backup slowly, however. Who knows if Amazon will decide that the act of downloading to your own backup is somehow part of a plan to crack their DRM. Maybe even trigger a ban?
Is it also possible for them to shut down your Kindle remotely? Does Amazon have such a "kill" or "delete contents" capability built into the Kindle? Not that I have heard but who knows? I do know Apple can do this with the iPhone/Touch to a degree. In that case, keep the wireless off (although maybe I am just paranoid here).
So I guess Ian will have to go with BAEN books and make good use of Calibre and other utilities. And who knows, DRM on books may follow the same course as DRM on music, given time it would not surprise me.