eBook retailers (Amazon, B&N, WH Smith) are seemingly overreacting to a few news reports and are unilaterally removing explicit, though perfectly legal, content from their sites. There’s no obvious coherent approach being taken, with self-published material targeted over “established” titles.
The fuss will either die down eventually, or alternatively niche e-tailers will spring up to fill the gap, as there is clearly a demand for this type of material. To reiterate, the “clean-up” is about “protecting” the public’s sensitivities (or, more accurately, protecting e-tailers from bad publicity), rather than removing illegal material from bookstores.