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I think it'd be beneficial if Amazon would allow their Mobipocket DRM customers to exchange for the same book in Kindle format. Folks that have Mobipocket DRM are likely going to avoid the Kindle as it'd make their former books unreadable.
This would allow Amazon to keep their profits and avoid competition while, at the same time, providing a path to move their already paid for literature to their new format. For Amazon, I would see this as a "win win" situation. They could entice former Mobipocket DRM customers and still disallow that format from appearing on the Kindle.
Even though Amazon's Kindle format may technically be Mobipocket, this has no relevance unless they provide a means for former Mobipocket customers to read their library on a new device.
All in all, I'm still depressed by the news. I figured that the Kindle would accelerate ebook adoption into Mobipocket DRM, instead it may very well destroy it.
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