I think you're the first person in this thread to really "get it".
To answer some of the parent's questions:
Q) Why would you buy it?
A) Because it's significantly less expensive (more within reach). Because it's Amazon, and it will have ready access to: music, movies, books, and an exemplary shopping experience for a wide variety of products. This experience will be well integrated with the device, and in the traditional Amazon way, everything will be extremely easy. "From the people that brought you 1-click purchasing."
Q) Is it just that it's cheaper?
A) You say "just that it's cheaper" as if that's insignificant. Did you see the way HP TouchPads flew off the shelves at $99? Do you know anyone smart enough, or with enough experience, to say that a properly priced Amazon Tablet won't fly off the shelves at half the cost of an iPad?
Q) Are developers going to want to build apps for it?
A) On a cached copy of their "Inside Amazon" page [1], they state: "Over 137 million active Amazon customer accounts". If I recall correctly, Steve jobs was proud of the fact that iTMS had over 100 million customers with credit cards on file. With 137 million active customers, they've got a massive base to which they can market.