I am actually looking forward to an Amazon phone. I think the media consumption model is a good one for these devices. Amazon could easily become the #2 or #3 Android phone maker behind Samsung and HTC. Also, in the US, Amazon could do something like Straight Talk SIM and partner with AT&T, Verizon, or Sprint and offer an "unlimited" talk/text/data plan for $45 a month that runs direct through Amazon.com. They could even throw in Amazon Prime on top or maybe for an extra $5 a month. Then for $50 a month you get phone, internet, movie streaming, book rental, fast shipping...
That could be very compelling.