oh no, just read the update on the first post
That's really sad. I really liked my Kindle, but if I can't backup my ebooks outside of the amazon cloud I'm definitely gone.
Just a while ago my amazon account was locked by mistake (I'm from germany and bought something from Amazon Spain which led to my account being locked automatically) and I couldn't access my books for days, and I couldn't even use my kindle as it was locked as well.
(or rather I couldn't access it, because my account was locked)
Since I had all my books on my computer it wasn't that big of a deal, I just fired up my old e-reader and continued reading there.
I guess it will takes ages (if at all) for the new KFX format to be cracked, right?