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For smaller tablets the nexus7 is probably a bigger issue for oems than the kindle fire, you have a device that is not hampered by a reduced application range with a good level of specs and reliable updates so the others need ways to stand out or to get by on low margins, the new kindle fires add to that pressure but don't overwhelm things.
For those who tout the overall amazon ecosystem as being a defining advantage, most if not all of it is available on the normal tablets without an inadequate AppStore being their only option. (for a device ideal for reading, just try to find a good comic app on the amazon one)
One thing that amazon have done this time which might help other tablet makers is their larger model, it is a nice size that has almost all the advantages of the 9.7" & 10.1" models but you save a fair bit of weight due to the smaller screen needing a smaller battery and thus you get closer to the comfortable to use one-handed situation of eink readers and the 7" tablets. If somebody can bring out a good one globally before amazon gets round to shipping outside the states they could really take advantage of the interest amazon have genereated in the form factor.
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