I don't think Amazon intends on marketing the Fire as an e-reader, that is what the Kindle is for. The Fire is a mini-tablet that is reasonably priced.
I think the way the e-reader aspect of the Fire works shows this. As I understand it there are no collections, the book carosel (sp) is awful, and it is hard to limit what books end up on the device. This tells me that Amazon never intended the Fire to replace the Kindle but to be more of a low priced, IPad substitute.