Amazon doesn't want to pay



That's a good point but I've already thought about that. In the TOS it clearly states that they may ask me to use negative keywords (which of course they didn't). And the second that I got their mail I implemented those negative KW (of course a day later I found out that they deducted all of my comission and I stopped promoting them).

Furthermore they gave me a list of 5 KW which they say that were showing up on Yahoo.com. One of them was "Kindle eBook", seeing as I didn't bid on the word "ebook" by itself, nor on "Kindle" I have no idea were they got this from.

There is another speculation although it's really far off out there, that one of my competitors is trying to get me by promoting my website on trademark terms....but that's just a paranoid thought.
 
Furthermore they gave me a list of 5 KW which they say that were showing up on Yahoo.com. One of them was "Kindle eBook", seeing as I didn't bid on the word "ebook" by itself, nor on "Kindle" I have no idea were they got this from.

Y advanced match is akin to broad match on steroids (or crack, depending on your sport of choice.) It's entirely common to see product keywords mapping to brand keywords - best practice: opt for standard match, add negative keywords and avoid dynamic ad insertion.