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Ultimately do you not even care about selling the physical Kindle itself?
No, we do care. Our goal with the Kindle device is separate from the Kindle bookstore. With the Kindle bookstore, wherever you want to read we're going to support you. And then for the Kindle device, we want that to be the world's best purpose-built reading device.
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In that case Amazon needs to embrace ePub and provide access to their store for non-Kindle owners, and I'm not talking about the Kindle for PC application. My choice is to read on the eBook reading device of my choice - that being one of the myriad other devices besides the Kindle.
Offer me the opportunity to purchase the ebook in a file format that works with my device without having to jump through hoops and having to risk various workarounds to get the book onto it. And while you are at it, how about getting the stupidity of geo-restrictions resolved?