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They are missing a market by shutting ePub out.
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Not really. Most people are using either tablets or their phones to read, not ereaders. For those folks, it's easy to download the Kindle app and read no matter where their tablet or phone comes from. I have a kindle app on my Nook HD+ and the Nook app on my Kindle HDX. Neither of them are on my itouch since I can't read that small. LOL.
The bigger problem is not the format, but the georestrictions. There's a bunch of books at Amazon UK I'd buy, but I can't get around the restrictions or my card won't work there. I have been able to get around another company's restrictions though, and happily those books had no DRM on them.