Kindle License to Limit Educational Use?

Library Journal has been tracking a story that involves libraries lending “loaded” Kindles to their patrons. At the heart of the matter is the question, Is it OK to lend a Kindle? The article cites an Amazon spokesperson:

Amazon spokesman Drew Herdener told LJ that a loan of a Kindle without content is OK, but sharing a device loaded with content “with a wide group of people would not be in line with the terms of use.”

Maybe with the use of works in the public domain from Mark Twain, Shakespeare, and James Fennimore Cooper, schools will remain immune to this “retail only” approach that Amazon is apparently taking. Is it possible to to unleash a revolution, with strings attached?