I can't imagine, that amazon makes no money with ebooks. I don't have the numbers, but the ebook business is not that small. It would be very strange, to make no money in a billion dollar business. Maybe amazon has get its initial customers through its book business, but I don't think loss leading books attract people to buy other products in such a quantity, that you forsake a whole market. When people are amazon customers, they tend to buy by amazon anyway. Of course there is some cross-marketing going on, but if I look for tvs on amazon, I get recommendations for tvs and maybe movies, blue ray players etc. but not the book of the day.
It is either to much money in the market to realy push all the competition out of it, or it is so small, that it isn't worth all this trouble, at least I am inclined to think so.
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