No, it feels like Amazon is over-reacting, and unduly distrustful of the bright young people who would wager their careers and reputations to come work for them.
Given that this thread seems to be fairly split on this issue (at least at the time I'm writing this) this seems like a bit unfair to say. Personally, I wouldn't give a shit, and I like to think that I have at least some self-respect.