Amazon, citing new provisions of their API/data terms of use, informed Delicious Library developer Wil Shipley that if he didn't immediately remove Delicious Library for iPhone from the iTunes App Store, they'd remove his ability to use Amazon APIs and data from all of his products, including the long-standing Delicious Library for Mac.

Just when we thought Apple had a hold on mind-boggling app blocking. Sigh.

TUAW quotes the relevant new passage:

(e) You will not, without our express prior written approval requested via this link , use any Product Advertising Content on or in connection with any site or application designed or intended for use with a mobile phone or other handheld device.

So, according to Shipley:

Delicious Library for iPhone isn't coming back as long as we're using Amazon's APIs, unless they decide to make an exception to section 4e.

Which he says he's been told they aren't going to do at this point.

Is this just another big company stumbling around in confusion about new mobile technology and how it's used, ready to rectify it when public outcry makes them aware and uncomfortable. Or is this a sign that Amazon has big plans for this new mobile technology themselves, and they don't plan to share?