Not since encryption has been invented. Firefox syncs currently open tabs and other stuff without letting Mozilla know about them.
Firefox encrypts your history and open tabs because those are sensitive.
A page number in a book is not.
And regarding battery life, even a CPU much weaker than the one used by the original Kindle can encrypt at 1MB/s, so encrypting a couple of KB is absolutely negligible.
It's about as acceptable that Netflix knows exactly what minutes and seconds of any streaming videos I've watched.
If you disagree with this practice, you're free to not accept the offer. It's as simple as that.
See? Random people declaring something acceptable or unacceptable without justification isn't particularly helpful. If you want to explain why you find it unacceptable, that might actually be interesting to someone.
I don't mind Amazon knowing how far into a book I've read, if it allows them to better compensate the authors of quality books and helps them penalize the authors gaming the system. However, if you want to keep your reading habits private, I can sympathize with that. An opt-in/opt-out option might be a good compromise in this case.
As for Amazon, don't you think it is enough to make first, say, 10% pages free? If other 90% is junk then there are reviews for that.
Privacy issues aside, there are a number of really amazing tools Amazon could provide authors/editors/publishers if they were willing to share this data with them. The ability to pinpoint where readers either skip ahead or pick up the pace would offer editors a remarkable glimpse inside how readers approach a given story. It'd be even more useful if those insights could then be applied to help with editing unpublished manuscripts in the future. Compared to the present, where editors are forced to make what are often judgment calls on plotting, having hard data to look at would be a remarkable benefit.