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The lending restrictions make sense completely from Amazon's point of view, and if it was my company I'd do the same thing. Their Kindle bread and butter is the books, and if people could lend them without restrictions they would lose a huge amount of revenue. Ebook piracy is already rampant, there's no need to exacerbate it by making it easy for anyone to start 'lending clubs.'
Personally I'm pretty excited about being able to lend books to my Kindle-owning friends, even if it's just once, for two weeks. I'm used to one- or two-week restrictions from unshackled, converted library EPUBs (which I delete from my Calibre library once the loan period is over). And I don't mind that I can't read it while they've borrowed it, I'm used to that from years of lending p-books.
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