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I still don't understand, how kfx should impact the ability to produce books, if no one but amazon uses it. You never really answered that, other than dismissing my phrasing of it as a distribution format (and mixing up things I said about consumers and things I said about producers). As eschwartz has said a few paragraphs before, books are created in various ways, none involving amazons format before publishing on amazon.
And by establishing an indie-book market, amazon did have a in my opinion good effect on the cultural landscape.
Many of the things that concern you, concern many people. But in my opinion you often argue on the wrong layer. It would be understandable if you used amazon as an example of problems you see. But you make them the source and the "enemy". But we really talk about things that are "wrong" in how politic and society handles or not handles them.
Finally a completly different point: competition. One reason for a proprietary format is, that you can innovate it in the way you think is best. If you look at the (non) adoption rate of epub3, the complains about it, the committees... It makes sense for amazon to have its own format. Must it be a closed format? Hell, no, and I think that is a legitimate criticism.
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