@pdurrant:
I accept it was me.

I actually caught it while I was going over the post again, but I decided to go with it, because the sentence had a we in it.

Also, the paragraph wasn't meant to stir things up, but to refocus that this is not just the word "magical" thrown out randomly.
As far as the rollout of .kfx - I think that there is no debate to be had, that .kfx currently is Amazons main file format in the ebook space and has been for quite a while. (Continuation of the naming scheme, switch in auto delivery, switching from features to be bundled with firmwares to be bundled with this new format...)
Windows Desktop just isn't important to them as a platform - nor is it to anybody at this point. They'd rather see you managing your collections in the cloud using a mobile device or a browser interface.
From where I am standing, the decision not to renew the Windows reading apps was made precisely to not loose control over the format. They are doing just fine, driving a closed plattform strategy (their Kindles, their Render engines, their formats - touch any of it, and they'll reiterate their obfuscation layer faster than you can look).
You could argue, that they are actually quite liberal on the Desktop App side, letting the old format (we can still understand) be auto delivered to you, but thats not where this argument is won.
They see the PC as a creation platform, so they are not delivering any tools for you to create books with it - this time around (because creating current Kindle books is now something Amazon wants to own as an exclusive ("Exclusive features." Also, lock in of content.).
They see the Kindle as their main consumption device (the one content gets delivered to), so they closed it down tighter than ever before, to gain "exclusive features" as marketing talking points.
You can't just propose that there is no problem with .kfx, because they don't offer a delivery channel for it to your PC. It still exists as their main file format at this point in time.