I am not really sure I am believing this article. To me it sounds like BS because of amazon's first response that can be read when you sign the petition.

But anyway, this is one take on what happened and to be fair to amazon, I am linking.

AmazonFail: An inside look at what happened
http://blog.seattlepi.com/amazon/archives/166384.asp

It is mighty convenient to blame the problem on some phantom employee over in France. But regardless of the gay lesbian thing, you know, if an adult book belongs on the best seller list but it is purged and they pretend it is not a best seller just to satisfy a bunch of book burning nuts, it is still wrong regardless of whether they are targetting gays and lesbians or not. The basic issue does not change.

Creating Fictitious Best Seller List is so New York Times. It is wrong.

Note: A lot of people on Twitter who said their books were delisted are now saying that their books are back listed. That is back listed, not black listed.