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Originally Posted by ctmagnus
But can you highlight, bookmark, annotate, etc. on the Kindle? If so, how does one back up that information?
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Yes, you can do all that.
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When the Backup of Annotations feature is Enabled, Kindle periodically makes a copy of all your notes and bookmarks you make on any of your content you purchased from Amazon.com. If you delete a piece of content from your Kindle or your Kindle is lost, stolen, or damaged, you can automatically restore your annotations when you download the original items from Your Media Library.
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You can backup your annotations into your SD card too.