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They want to be the top e-book seller of course.
You only sell an e-reader once. Books, you sell over and over and over again. Someone who reads 52 books a year, at an average price of $4, will spend over $200 on books. People who don't have a Kindle because they may want to have choice of shops, would maybe spend a part or even all of that $200 at Amazon, if they'd sell and support EPUBs.
People going for the Kindle because of the Amazon shopping experience and support will undoubtedly shop at least partly at Amazon for books, whatever format they support.
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