That's definitely true in the long term, but while I don't believe that Amazon is necessarily going to abuse the power they ask for just because they have it, heavily discounting apps at the developer's expense is a great way to get traction for a new app market that most people haven't heard of.
For many of the discounted apps, those that depend on the purchase revenue (vs. ad-based) and that might be fad, or temporarily popular, this could effectively kill them off in the name of helping Amazon.
For many of the discounted apps, those that depend on the purchase revenue (vs. ad-based) and that might be fad, or temporarily popular, this could effectively kill them off in the name of helping Amazon.