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iBooks effectively has only about 30000 titles (excluding public domain). Amazon, B&N, Sony have roughly ten times that, and seem to be adding 30000 every month or two. In addition, so far, Apple is insisting on the 'agency' model, which some major publishers (Random House) are not agreeing to. I don't see them achieving parity on selection for quite awhile, if ever. Rather, it seems Apple is only interested in offering more high volume, mainstream/bestseller titles (like what you might find at Walmart CostCo etc), and will not pursue the 'long tail' that would attract the more adventurous and voracious readers who patronize Amazon and B&N.
It is also says something that iBooks doesn't come pre-loaded. It's more of a 'there's an app for that', checkbox thing than any major component of Apple's business strategy. They are just trying to carve out some additional profits with as little work as possible. If they can sell iPads to Amazon and B&N customers, so much the better, more eyeballs for iTunes store also, and locking people into the larger Apple ecosystem (if you have purchased hundreds of dollars in iPad apps, are you going to buy an Android or Windows tablet in the future?). In that light, iBooks is more proof-of-concept rather than 'Kindle killer'.
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