Some people will argue that authors shouldn't have to crawl to the publishing establishment now enshrined in NY. And it's good that Amazon is reaching out to authors who were unable to reach an audience through traditional publishing methods. However, if Amazon puts traditional publishers out of business, then it will become the establishment. An establishment that wields far more power than the current publishing houses.
Although initially Amazon's entrance into publishing may increase the power and freedom of writers, eventually Amazon's complete control of book creation and distribution will benefit only their bottom line.