Although it's not entirely Amazon's fault, they could certainly be doing a better job with PDF support. Check out the last section of this blog for examples of simple improvements:
http://kindlecookies.blogspot.com/20...-features.html
So I think Amazon is definitely not trying very hard with PDF. While I agree it's primarily an issue for academics, I'm a graduate student (in Europe, not even Kindle's home turf) and I see a lot of other grad students using Kindles. I'm skeptical that academics represent only a negligible share of the market.