The customer isn't the last say in what is good for a society or economy, if Amazon puts a moat around IoT that's thousands of companies, products, employees, and unknown innovation all either gone completely or sucked up into Amazon.
How does this put a moat around IoT? This is creating a network that didn't previously exist. How does that hurt innovation? If you don't want to be a part of this network you can just... continue what you were doing before. Now at least there is an option.
It's really not that hard. The user loses freedoms because of technology monocultures and Amazons move will further facilitate a whole television market that semi-covertly spies on the user.
It really is that hard. Technology monoculture? This is built on the back of existing networks, which will continue to exist when this new network is online.
Your Smart TV already spies on you. Not sure how this helps.