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This is terrible, for all the reasons stated above.

There is no such thing as "used" digital content in the way consumers understand it. It's a copy, no matter how you shake a stick at it. ("I happen to have 1000 "used" copies of Wool here. A buck each, step right up!")
We all know that DRM is not much of a deterrent.

At least right now it's illegal to sell someone else's book and pretend to have copyright (or at least it's illegal once you get caught).
 

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The cloud thing makes a lot of sense.

You sell your book, it disappears from your cloud and goes to someone's else's piece of it. This is much like selling a used book at a garage sale - you no longer have it to re-read or sell to someone else.

I'm still trying to figure out how to get Wool from my cloud reader at Amazon to my trusty Sony. No joy. :)
 
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