Their account has been restored. (
http://www.digitalmanga.com/blog/235...count-restored )
I'm not sure we're getting the full facts from the publisher. Manga is a Japanese comic form, and Digital Manga Inc's catalogue includes a genre called 'Yaoi' (You can view their offerings in the genre by searching for the terms "digital manga yaoi" in the kindle store currently).
As for what Yaoi is:
(
http://www.junemanga.com/)
Is this what it seems to be? I don't know. I think DMI could be treading a fine line here. Some of the characters on their covers look awfully 'young' to me. Perhaps DMI could have mentioned the word 'young' in addition to 'homosexuality' and 'erotica', you know, in the interests of full disclosure.
Amazon certainly mentions explicitly that they may want to review their future offerings before publication.