I can't help but wonder if they'll let Amazon's app remain. After all, since you can send files to Amazon that are converted into their format, their app could be infringing on copyright...

While I understand the conflicting pressures Apple must be under with regards to various apps, I think it is hurting them quite a bit, but it's their own fault. Because they've made themselves the gatekeepers, it's much easier for other companies to sue them if they allow an app on that violates copyright or other laws.