I think this is a win for consumers, unless you factor that this is the end of the android tablets.
Really, we had RIM and HP and Samsung who have all tried to make tablets. Now who is going to try to compete with the $200 Fire? If you have Apple dominating the high end and Amazon selling tablets at a loss on the low end, who is going to get into this market to compete against those two guys?
The Fire is definitely competition for the iPad, but it is just going to wipe the floor with everyone on the low end of the tablet world. There might be a bunch of tablets in the works because the development is already done. So they will come out. But what company is going to keep investing in this area? I will answer my own question, Microsoft will still keep going. But that is because their Windows monopoly money allows them to do many stupid things and to throw money at stuff. But Microsoft is a special case as they are still trying to find something to do with their monopoly money (when they should be just paying larger dividends to their shareholders).
Basically, I think Amazon just killed the late-2012 Android Tablets. And then that means that Google will stop supporting tablet android OS, right? Which will be another risk that will keep companies from investing int developing more Android tablets.
Nice move Amazon, that price point is killer. And if the video demonstrations are to be believed, the quality is good enough.