I'm normally the first one to defend Kindles. I love how easy and ubiquitous they made eBooks. However, I do agree that limiting eBooks to just Amazon sources isn't too bright. This thread has made me come to a decision regarding my first novel (to be published next month - shameless plug). It'll be available in paperback and Kindle versions as per usual book publishing methods (because, like it or not, that's where most people will buy the book from), but I'm also going to look into setting up a DRM-free option for people. Perhaps even a Pay-What-You-Like system.
If anyone has any recommendations for systems like this that an author (with a web development background) can put into place, I'd be interested in hearing them.