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I don't see this as an apocalyptic scenario, by any means. In fact, it seems to fit in pretty well with the "sell our books everywhere" strategy that Amazon revealed when they put out their iPhone app.
In Stanza, they've got a ready-made distribution channel on to other ereaders. Think of it this way: Amazon currently controls the AZW/Topaz format. If what they're intending to sell is books, do they care very much what you read the book on? Probably not. (Again, this was demonstrated by the iPhone app.) What they care about most is that you can read an Amazon book on any player out there (including the Kindle, of course), but that you still have to buy the book to do so (i.e., it's not really of benefit to them to let people break the DRM outright).
So what I think Amazon is looking to do is to take Stanza and extend it to every platform possible, so that anyone with a reading device can use it to buy Amazon books. (There are, after all, quite a few non-iPhone phones out there.)
As far as Stanza dropping support for other stores: I suppose that's possible, but I think it would be a needless strategy, and might even bring the law down on Amazon. No store is even close to Amazon's size. How much of a threat are they, really? Even Fictionwise has a distance to go. Rather than trying to shut down these relatively small channels, wouldn't it make more sense to make lemonade out of lemons, and simply allow the Kindle access to these other stores? If you've got the most versatile ebook around, and the biggest store behind it, isn't that the best position to be in?
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