Amazon has got itself into this mess all on its own - I have no sympathy for them and their bully-boy tactics. Since I still buy print books that have a visual component, I've been using the
bookdepository instead for few months now and am very happy with their service.
Having said all that, the real problem here is the agency model. People have got fixated over short-term issues with pricing, but this is just the first example of how the agency model can cause long-term harm to the market. Part of the blame lies with Apple, which has elevated the culture of control to a dangerous level, but a large part of it lies with Amazon itself. They got too big, they got drunk on their own power, and they devalued other people's product in order to grab yet more.
Amazon and Apple are just Scylla and Charybdis, a pox on both of them. If you want ebooks to have a future, then buy them from Fictionwise, BooksonBoard, Smashwords, B&N or any of the other smaller outlets.