1) They list an "Accept direct shipment from Amazon" option (coming soon). Think about it: this means a book could be printed, sold, shipped to this company, scanned and destroyed without ever being read. Something is very odd here.
2) The business is located four blocks from my apartment. Maybe I'll try them out...
Yet, the address is of a parking lot... (10 E 3rd Street in San Jose). Strange.
Resold as PDF files? Not by this company, anyway...I don't think that business model will work out legally.
Resold by shady third parties? Maybe.
Copied and bittorrented? Definitely.
I wonder. If the company holds onto the PDF and just sends out that PDF whenever someone mails in a book already scanned, isn't this the equivalent of those music services which simply make you prove through uploading music that you already have a copy and then give you access to their one stored version of that song? I think this has also been done with DVDs as well. So why not books?
Would you be okay with them no longer being bound? They saw off the binding so they can use them in a sheetfed scanner.