Yes I can read books and work with calibre/usb without wi-fi on. But I also have kindle unlimited so I need to use wi-fi for that. Unfortunately while you connect it, they also try to sync what you have. But I get tons of KU books and then load them into calibre through K4PC. But I really haven't had much trouble before yesterday. I was just afraid Amazon was trying to make a further restriction on books you didn't get from them.
Thankfully it's all good (for now).
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