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Yes, you ought to be able to sign out of your Kobo account and still use your e-reader. Although I'm currently using a Clara BW, rather than an HD, it's not signed into my Kobo account, and is working exactly as it should. The same is true of my Mini and Libra H2O.
You say that you sideload all your books, but are you using it in sideloaded mode? FWIW, I do. Having said that, I don't think that it's necessary.
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