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Personally, I tend to the belief that Amazon is trying to prevent people from copying ebooks to too many devices exceeding the limits for multiple device usage. So if an ebook shows on a device that their records show it should not be on, it will be removed. A Download & Transfer via USB ebook would show as being downloaded for a specific device so not a problem.
So if I purchase an ePub copy of the book, convert it to azw3 and send to it to my Paperwhite with the information needed for it to work with GoodReads, Amazon would see it as an illegal copy and remove it. Which does seem to match up with what I saw when Amazon removed books from my Paperwhite.
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