Ah, you mean like Apple has done with the iPod?? License out the hardware so that anyone can build an iPod?? You say that haven't done that? Oh ... then of course the iPod will never be a success. How about Sony?? No? Oh my.
You say you "love [your] Kindle" ... but you "hate" the form factor?? Then, you don't love your Kindle ... you love something that doesn't exist yet. Do you love the Sony form factor? Then why not purchase a Sony??
Drop the proprietary format?? Sure ... just like Sony. Oh ... right, Sony has a proprietary format too. Bummer.
Maybe it's just because I do happen to love the form factor of the Kindle, I also love the way it works. I really love the content that is available ... more so every day as they add books and authors. In any event, unless the author wants to make the argument that all manufacturers of all products using core software should license out their hardware, then (for me) his argument fails. I do not see why it is only Amazon that should do it .... which is the impression that I get.