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Amazon ought to stick to its current policy of ONE format for its ereader with DRM. It does support a couple of other formats -- notably PDF without DRM -- but the only format it sells is Kindle with/without DRM. That means customers do not have to make a choice at point of sale: they simply click "buy" and it works.
However, Amazon might consider (and I assume this is possible) a one-time per device software upgrade for a fee -- $10 for example -- which allows you to install a module which will recognize and decode Adobe ADE files. This would allow Kindles to borrow library ebooks from Overdrive -- the key differentiator of all other ereaders. And it would allow Amazon to avoid paying corporate wide royalties to Adobe for every Kindle made. Only those people who want to borrow such books on a Kindle need bear the expense. Amazon could position it as a "Library Upgrade" and promote Overdrive at the same ... downplaying the ability it gives Kindles to buy books in other stores.
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