Do we have any more clarity on cut off devices and book licenses?

I know most people here "liberate", so it's not an issue for them. But since my K3 has most of my Kindle books on it, I'm wondering if those books are still counted as a licensed copy? Presumably, the system won't update at this point if I delete a book from the device. I have got the warning a couple of times in the past when downloading a book to too many devices at once.