It's very possible that this never registered high enough on the list of problems to deal with. It's likely that there are very few kindle fire owners that use the encryption.. which is what they say.

The only reason I agree with you is that, if the hardware is the problem.. then why not just say that?

Then this begs the hypothetical question, 'If even only one person used encryption out of all of the devices sold, is it a feature worth keeping?'

I think most people here would say 'yes'.. but would most average company executives?