'Get for Kindle’ for all Penguin eBooks in your catalog has been restored as of this morning. Penguin titles are available for check out by Kindle users and the Kindle format will be available for patrons who are currently on a waiting list for a Penguin title. This does not affect new releases, which remain unavailable.
I'm really glad for Penguin that they backed down in this one regard; like I said before, readers don't really know who the publisher of a book is. Heck, I was watching the response on twitter and much to my surprise there were librarians who hadn't noticed the publisher; they didn't need to. And that meant that a lot of readers' and librarians' first introduction to Penguin was when Penguin thwarted them.
But at least this one small issue has been repaird by Penguin. Unfortunately, we still don't know why Penguin created this situation in the first place. According to their statement, they were concerned about the security of library ebooks, but it's not clear what that meant.