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This is what they realize, as custom roms can squeeze new life out older smartphones, with a slimmer OS, a little background processes trimming and some slight overclocking.
And they are interested in making powerful phones.
It would only probably not work with any generic Android installation if it had special hardware uncommon to Android devices. As it is, the Kindle Fire has LESS special components than most other tablets.
I'm sure that days after it lands in consumer's hands there'll be tutorials all over the web on how to sideload Market and anything that's missing.
Amazon's apps may not work only if they have some stupid version checking / DRM built in. If they're generic apps like anything else on the market, they'll be fine.
It's a cheap tablet with generic Android-supported hardware. The only things that are going to make it uniquely Kindle are the Android customizations and apps that they won't offer on the standard Market. No different from HTC Sense and Motorola Blur.
Complaining about the apps and Android version preinstalled on an Android device is like complaining that a PC comes with Internet Explorer. Just load something else.
Chrome's rapid releases don't surprise you with a "Please wait..." screen or break extensions every release. It's not a matter of philosophy, but annoyance.
Any corporation in Apple's position would try the same thing. Business is a game of market lockout. They gave it their best shot (while trying to keep a straight face), and USPTO called their bluff. End of story.
Microsoft sees the future of computing interfaces and is actually moving towards it. Large buttons makes mousing faster and easier anyway. Windows 8 is gonna support mouse+keyboard, touch and stylus equally fully, no holds barred. OS X is going to have some catching up to do.