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It cripples not just delivery or beyond-1km remote sensing, but also very local stuff like "We want to use a drone with a camera to inspect the condition of our warehouse roof".

It adds a lot of complication for some use cases, but I bet you'd find it isn't the common use cases (though who's to say what would be common in five years?).

Yup, Amazon or any other drone-based delivery service will have to apply for a "waiver" as mentioned in the press release.

Launch it from the top of a skyscraper!

The regulations do stipulate that you get 400 feet from the launch point as well, so if you launch from 1000ft building, you get to go to 1400ft

Technically, it's 400' from the tallest surrounding object.

So, yes; you can technically fly to 1400ft near a 1000ft building.