I think it does make a good point on amzn in that their earnings quality is moving in the wrong direction - something that is consistent with their strategy and focus. They are in the grow at any cost mode regardless of the results.
Their tablet computer will only serve to accentuate the negative from a financial performance perspective. Investing in engineers and intellectual property to sell a very low margin commoditized product in which they have marginal competency will not result in improving earnings quality.
Earnings quality of their $1B income wouldn't be such an issue if the market cap wasn't $100B.
The whole time I was working I was concerned about the QUANTITY, not QUALITY of my earnings. I've never noticed any difference in the dollars I earned, just the number of dollars. You claim it would be ok for AMZN to "only" earn 1 billion, if their market cap wasn't so high. Like it's Amazon's fault that people (like me) bid up the price of Amazon stock? Anyway, I'm glad to see that you all know so much better than Jeff how to make money.