You actually spoke to a rep about this? Well, my first thought is that the Amazon rep didn't know what he or she was talking about or was just making stuff up; this happens occasionally.

The paper version is sold by Amazon.com and is in stock, so the paper version is legally for sale in the US. Not sure why the e-version copyright laws would be different, and you say B&N has an e-version available. You might call back and speak to a different rep...
Or just click for it to be on Kindle, which I did, and got the standard "We're trying to get ALL books on Kindle" message.
Betsy