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Besides pissing off Kindle (and other ebook reader) owners, it'll turn many to the darknet for ebooks. Withholding ebooks from Amazon hurts not only the Kindle owners but other devices running the Kindle app.
Personally, if the publishers dropped DRM I wouldn't mind paying a little more but not hardback prices unless I was legally allowed to lend or sell my ebook. In other words let me treat my ebook like a hardback then I won't mind paying more.
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