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Your number 2 is definitely not true. Counterfeit books have been sold though that Buy button and may still be.

Yes, and counterfeit books have also been sold through third party sellers who don't have the Buy Box – it's a problem independent of the Buy Box.

The problem is, when counterfeiters become the default in the buy box, it gives them market they wouldn't otherwise have.

If you go to a bootleg site, you expect bootleg books. If you go to Amazon, you expect legitimate books.