I gather you're talking about Let over Lambda? You're right, the consequences of modifying literals are undefined (this is
explicitly noted in the CLHS), and I think it's wrong not to note this somewhere in the text.
Overall, I have mixed feelings about the book. On the one hand, it's interesting and unique, but on the other hand, it contains a couple of questionable design decisions and tends to ignore subtle issues that you ought to be aware of as a Lisp programmer. Modification of literals is one. Another is this talk about
“duality of syntax” being a reason not to lexically distinguish special variables from lexical ones, which is problematic from an engineering point of view, as noted in numerous texts on Lisp style. (And in any case, duality of syntax is
preserved by using earmuffs, so I don't really get the reasoning anyway.)
That said, I haven't yet worked through the book. Perhaps the issues are addressed somewhere rather than dismissed. Also, its virtues might well be much greater than its flaws. It
is an intriguing piece of work, after all.