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Does Amazon want to be in the ebook market? They want to be there because it is the future and they do not want to go out of business.
Can they get the publishers on board? Yes, a few will easily go along with them. As the marketing might of Amazon starts to increase the sales of these publishers the others will fall in line and offer their books through Amazon.
Will it help other ebook formats? Yes, beyond the rising tide raises all boats theory, the greatest benefit will be the increased awareness and utilization of ebooks.
Will Sony Connect Store go away? Even the #2 position behind Amazon will be far more profitable than the #1 position today.
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