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Amazon make money selling content, Apple makes money selling hardware.
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Whether Apple's ultimate aim is hardware or content for the user it ends up being about content and ease of use. I don't think may people buy a device for it's hardware specs unless it can be shown as demonstratively superior. Apple did that with the creation of the iPad.
But now there are multiple vendors with big pockets entering the tablet market and that gap will quickly narrow or disappear. The buying decision will come down to content (that's why you bought it right) and ease of use. This decision is a step back on both fronts.
This is not a bold strategic move anticipating future market needs, it's simply what it look like on the surface, dumb and self serving. It won't be that long before we will be reading the "What happened to Apple?" articles and when we do, whether it's this year, next year or several years from now, this decision will be one of the bullet points in the article.
Lately their reputation has been growing, but not in a good way and they have chosen to ignore it. (Always a bad sign) I'm sure they see it as simply a spin problem for the marketing department.
This clearly is not the straw that breaks Apple's back, but its certainly one that will be counted when their fall occurs.