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I'm not surprised that even a publisher is unaware of the variety of e-book readers out there. As forum participants we know the options, but e-books are still rather rare, and Kindle is perceived as the market leader and gets the lion's share of press right now.
It's a bit surprising that the publisher is so extreme that they will boycott a convention because Amazon is doing a Kindle presentation. However there are a lot of Luddites in almost any industry, and a small publisher might find it a bit onerous to hire staff to prep e-books, particularly if margins are already thin. I believe they might also need to negotiate with the authors (and/or their estates) for e-book publishing rights; even if the authors etc are receptive, that still incurs staff and legal costs that a small publisher might not want to deal with.
(It's also possible that Amazon may have rubbed this publisher the wrong way via things like strong-arming them to use BookSurge for POD.)
Otherwise the objection seems a bit silly, as I am not aware that Amazon demands exclusive sales rights for the e-books it sells. I.e. this publisher ought to be able to sell their books via Amazon, Sony, Fictionwise and so forth without restriction.
I don't think this will lead to the demise of this particular publisher though -- e-books may be "hot" right now, but it's not a huge market yet. Hopefully they'll have time to come around of their own accord.
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