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Amazon does allow uploading new versions and even lets you mark them with edition numbers.
I try my best to make every book I publish "finished" in the traditional sense, but there have been a number of cases where I have had to make updates. In one instance a reader let me know of some formatting issues that had crept in during a conversion process, in another I found a few minor mistakes that I'd missed during my editing.
As long as the ability to update isn't used an excuse to sell crappy first drafts, I think being able to upload new versions of texts is useful for both authors and readers.
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