Unless they are selling it in stores, it's not going to be a big competitor to the iPad. iPads are displayed in stores to be played with and people fall in love with them. If Amazon is only selling online, it's going to be more of a risk to buy one if you can't play with it first.
You have never seen a Kindle in a store? Best Buy, Office max, Staples just to name a few all carriers that have them on display to "play" with.