Can't agree, Jack. Copying highlights is available neither for DRM-protected, nor for "free" books in the Kindle app.
Blocking the copying of highlighted passages, most of which are extremely short, is ridiculous. There is no way to select the text of an entire book, anyway! We've just discussed how it seems impossible to highlight text even across
two screens. Besides, iBooks as another "bookstore app" does support the copying of highlighted passages.
As to the clippings file, I love it on hardware Kindles, but it's another big omission that there's no such clippings file in the Kindle app on iOS/Android. Now, Marvin blows both the Kindle app and iBooks out of the water: it allows both the copying of highlighted passages,
and their export (soon also import), per book, in an XHTML file. This is the feature I've been waiting for for ages.