Nik,
My wife brought it to my attention and I thought the same thing until I read Amazon's response:
Earlier Wednesday, Amazon stood by its decision to sell the e-book.
"Amazon believes it is censorship not to sell certain books simply because we or others believe their message is objectionable," the company said in a written statement. "Amazon does not support or promote hatred or criminal acts, however, we do support the right of every individual to make their own purchasing decisions."
She spends, correction spent, a lot of money with the company, and after reading their "official response" to this, I think someone in charge over their did review it, approved it (kindle does have a guidelines, which this SHOULD clearly violate) and allowed him to make money from the sales of it on their store.
I do not care to tolerate the "mainstreaming" of pedophilia, so this is a stand I'm willing to take until the person who allowed this is no longer a part of the company.