Yes, they would own the market on the e-Reader devices but I suspect with Amazon the real profits are the books being bought from their store. If they endorse the ePub reading ability that suddenly lets people buy ebooks from alternative suppliers that will work on their K3 ( to be fair, a lot of authors already offer mobi format books outside of Amazon )
The K3 is the cheap Razor handle... and the books are the blades that they want you to keep on buying (but only their brand!)