And to think amazon is "surprised and disappointed by this action" does not seem the case. They are definitely trying to make themselves look charitable because of "educational purpose".
The original creator has issues with it. And if I was the content creator, I probably would have.
Why would you consider pen+pencil and free app to transcribe audio to text different in terms of copyright infringement? Does Audible charge you more to use this feature?
What I see here is an attempt to dictate ways in which I can use book I already purchased - i.e. limit my rights.
What I also see: a bunch of companies that are trying to squeeze more juice from the market, which they are not even willing to serve in the first place, because they, being experts in the book market, couldn't figure out that market needs this feature, while a bunch of IT geeks, did.