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ePub format is not the issue. The issue is Adobe's DRM. If Amazon changed its mind and switched from mobi to ePub but kept using its own DRM, nothing much would change.
In an odd way, though, Amazon's walled garden is only really useful on e-ink devices. On a tablet it is pretty meaningless because you can d/l multiple apps. As the costs of e-ink devices decrease, perhaps it will change its strategy. Though, by that point Nook might be dead (with Apple iBooks the main rival), or the publishers may drop DRM. (If B&N got the publishers to drop DRM, Amazon would, and then there would be no problem. Only the publishers, one way or another, can solve this issue.)
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