I was wondering if there are legal
issues for developing such a product,
in regards to violating "terms of use"
of such websites.
The legal issue would be violating the terms of use.
I assume some of the info is public
and not copyrighted, i.e. title,
authors names and publisher. What
about cover images, description, and
reviews?
Doesn't really matter, if you are already violating the terms of use. However, even if you weren't, such wholesale mining probably doesn't constitute "fair use;" even if individual elements are not copyrighted in isolation, the web pages themselves probably are.
Could the developers be sued?
Always a possibility.
how can they legally protect themselves?
By asking for permission in writing first from the website in question, and by getting advice from a lawyer who specializes in copyright and contract law.
Some websites actually allow limited data mining. Check with Amazon and Google about this. In addition, I believe there are some web services out there that provide services similar to the ones you are describing. They are the same services that provide thumbnails in Winamp; if you find such a service, you may not need to screen-scrape Amazon at all.