To sync a "last read page" across devices, you need to send a location back to Amazon. It's also appropriate to tie a location to a device, so you can pick the appropriate device to sync your position from. And, when you highlight a word, the translation, definition, and wiki page is brought up, so of course it's being sent to bing and wikipedia.
There are valid concerns here (there's too much information being sent overall - the location data doesn't need to be sent with every page turn, for example), but these concerns are being buried behind FUD about none of this data needing to be transmitted.
EDIT: Can I also point out the ironic nature of griping about Amazon's analytics collection while running an analytics suite on the webpage yourself?
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