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Just as an update, Amazon now does allow you to permanently delete books you've purchased from the "Manage My Kindle" page on Amazon.com. If you do that, you will NOT be able to re-download the book unless you re-purchase it, however.
Now, my guess is that Amazon still internally keeps track of any purchase you've ever made through them, eBook or otherwise (just like every other company out there). But this would remove the book from your Archive (which is handy if you never want to see it again, want to re-purchase an updated version, or don't want someone else sharing your account to see that title).
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