I don't think it's completely out of the realm; Amazon has the best chance of pulling together the necessary infrastructure to make it happen, and they have a brand that people love almost as much as Apple. 12-15 million units is not too large a figure, especially if they can go international quickly.
I do think the idea that there would be a 7", an 8.9" inch and a 10" is a little absurd. I'm thinking there are going to be 2 different Kindles with LCD screens in 2012; the Fire and the 10", probably called something even more ridiculous - my money is on "Blaze". But who knows, maybe their plan is to flood the market in the same way they seem to be doing with the e-ink models - one for every budget and screen size preference.
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