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I brought this over from the Amazon.com CS forum posts. This shows why books stay on the Kindle after it's been deregistered from your account.

3/9/2009
Kindle License Limits
The licenses associated with most books and other non-subscription content purchased from the Kindle Store allow you to download and view each item for your personal use on up to six Kindles registered to your Amazon.com account. Each download to a Kindle, iPhone, or iPod Touch counts as one of those (up to) six devices. Once you've reached the limit, the title(s) will need to be purchased a second time to download to further devices.

In cases of this license limit being reached due to warranty replacements or other exceptional circumstances, Customer Service can free licenses used by devices no longer accessible.

3/12/2009
Kindle Book Licensing Restrictions
The licenses associated with most books and other non-subscription content purchased from the Kindle Store allow you to download and view each item for your personal use on up to six Kindles registered to your Amazon.com account. If you deregister a Kindle for whatever reason, the licenses for any books downloaded to that Kindle remain linked with the device.

If you don't know already, on the Tips, Tricks, and Troubleshooting board, I update the Amazon.com CS forum posts daily (usually in the evenings on weekdays). Customer Service answers questions or responds to threads that have been posted on the Amazon site. I've actually found some interesting information that I didn't know, and gotten clarification on other items.

I have a link in my signature and I always update the thread title to show when it was last updated if you're interested.
 

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Thanks, that should clear up some questions people may have.
 

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Luv, I have found these posts very interesting too, thank you for bringing them over.  I notice that you have it locked (which I understand) but I would love to be able to mark it so that it shows up in my "replies to your posts"  Are you or is anyone else aware of a way to do that on a locked thread? 
 
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