I'm not sure it really works in Amazons favor. Sure, some customers might be more inclined to buy the Amazon recommended choice. But I wonder how many are frustrated like me.
When I buy stuff on Amazon, it's not because I want Amazon to recommend their pick. I want to compare alternatives and make my own choice. That's getting harder and harder, because there's a gazillion identical results with spammy, polluted product names, sold by a bajillion different-yet-indistinguishable sellers. And each one of those results has a nice, fancy-looking template, but when you start reading, it's full of spelling and grammar errors.
It's as frustrating as trying to have a "conversation" with a chat bot.
What's the solution? Beats me. A naive part of my brain is suggesting some kind of vetting process for sellers, or maybe a trust rating, but I'm sure there are tons of horrible problems with those ideas.