Hacker Igor Skochinsky used DRM to load Mobipocket books onto his Kindle. Using a series of scripts, he's able to convert eBook files to Amazon's AZW format and then add the necessary serial number DRM, specialized per an individual's particular Kindle.
Amazon can do a lot of money only from selling kindle, like Apple does with the iPod.
The Kindle has many flaws, but it does allow you to read a few different non-DRM formats.
Non-DRM Mobi books, like free e-books found online in Mobi format, or files you convert to Mobi files, are already supported on Kindle.
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