Take a look at this.
Short version: Woman has Kindle and many Amazon books. One day, Kindle turns out to be wiped, account is closed. Amazon claims her account was "connected" to some other account which was closed for undetailed reasons. Refuses to explain, refuses to reopen account, stonewalls on further inquiry.
This is completely unacceptable behavior. If you take my money and close my account, the LEAST you owe me is (A) an explanation for your actions, and (B) to let me keep the books you ALREADY let me purchase, or (C) to refund ALL of the money that you took from me for the books I have on my Kindle.
Speaking as an author, I (like burger_eater who called my attention to this fiasco) make a bunch of money through Amazon (even though, as of yet, there are no Baen e-versions on Amazon, my paper books sell lots of copies through them). I can't very well shoot myself in the foot by NOT selling through them (even if we were to assume that Baen would let me MAKE such a decision, which they wouldn't).
But I'm also a customer. Amazon's been my one-stop entertainment shop for years now.
This kind of behavior SERIOUSLY makes me want to reconsider. It *DEFINITELY* makes me very reluctant to buy a Kindle -- something I was *going* to put on my wishlist for this year.
Not now. Why should I? Obviously Amazon feels that any books I bought would actually be theirs, and mine to access only on their sufferance and good will. If I'm going to get a tablet-thingie, I guess I have to go with iPad. At least that device has more utility, and isn't under the control of a company that feels shutting down a customer, taking their paid-for materials, and then refusing to explain their actions is a perfectly good idea.