Amazon may not create the application, but all the pieces are available.
There are non-Amazon applications that can read, display, and convert to/from Mobi.
The encryption scheme is already known. Creating a "new" MobiPocket ID and registering it with your library is not a problem - I already registered my Kindle.
Unless MobiPocket PATENTED the process, it seems to me that processes that we can do with scripts and Calibre could be implemented in a new eReader program. And if done appropriately, would not expose an unencrypted eBook.
If any of these (future) eReaders is straight Linux and supports WINE and is/or emulates Intel, then a real MobiPocket Reader can be installed.
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