They revolutionized online shopping and eReading. Now they're attempting to make a mark on a market that has been dominated by only Apple for the past 2 years and look to be making a damn good job of it.
No. Let's not get crazy here.
They're staying in the eReader market. The Kindle Fire is a Nook Color with a different coat of paint and a different interface. It is not a tablet. It is
far too limited to be considered a tablet. It's limited to two-finger multi-touch, it has no accelerometer (so all the game and apps that require it could never be ported over), and is designed to let you read books and play Angry Birds.
Sure, you can surf the web, provided you don't mind the fact that Amazon will be monitoring every single website you go to, much like Google. And, like Google, they'll likely be watching what you buy and what you search for. However, unlike Google, they probably won't be selling it to advertisers (who knows, maybe they will), but they'll no doubt be using this information to throw ads and suggestions at your face the next time you go to shop on Amazon or the next time you check your email. Hell, some members of the government are already concerned about the privacy issues this brings up:
http://www.politico.com/news/stories/1011/65978.html
It looks interesting, sure, but it is not a tablet and is not contending with the iPad in the tablet market. Its main opponent is not other Android tablets either; its main opponent is the Nook Color.