Leaving aside the paranoia, this article was also factually wrong on multiple points.
Most ereaders have some kind of antenna: cell phone, Wi-Fi, Bluetooth, sometimes all three. To Cindy Cohn, a lawyer with the nonprofit Electronic Frontier Foundation, those antennas are a threat to the inherent privacy of the act of reading a book.
Really? So the Sony Readers, Pocketbook (older models), Jetbook, Hanlin, and Hanvon have antennas?
And it's not just what pages you read; it may also monitor where you read them. Kindles, iPads and other ereaders have geo-location abilities; using GPS or data from Wi-Fi and cell phone towers, it wouldn't be difficult for the devices to track their own locations in the physical world.
The Kindle doesn't have geolocation abilities. The trick it uses with cell towers doesn't work well, and using Wifi to pin down a location doesn't work as well as you think.
I'm going to stop here. The rest of my post showed me getting more and more irritated at this idiocy, so it's better off unwritten.
But I will say this. I remember when the EFF first came out with the ereader's guide to privacy. The hysterical comments some people made sounded much like the story above. Why can't everyone put this in perspective?
Do you have a credit card, store cards, and a cell phone? Then you're already being tracked to a fare thee well. Adding an ereader to the mix won't make a difference. If you're obsessing over it, stop. Deal with the other problems first.