OK, I generally agree with you about subjects like this. But let's take this one step further. What will the actual outcome of this be if we have deemed that Amazon is too big to be consumer-friendly.
1) Amazon drastically ramps up the burden of proof of real actual reviews, and rather than erring on the side of posting it ends up false-positively identifying customer reviews. HackerNews headline next week: "Amazon is censoring real customer reviews for products! Company no longer customer obsessed!"
2) Amazon dramatically cracks down on sellers, reducing overall inventory, and sucking up some real genuine sellers in the process. CNN headline: "Amazon destroying small family business sellers - hundreds reporting going out of business as they're being driven out of the market". Hackernews headline: "Amazon inventory down x%. I no longer go to Amazon anymore to find what I need because it's not available any more".
I could keep going.
My point is I don't think it's in any consumer's interest for Amazon to decrease their inventory, or crack down on reviews. And any increase in quality or human review of the products or reviews will only raise prices, which again, people don't want.
Remember - Amazon's stock price isn't based on their profits. Their profit margins are razor thin because they actually generally do pass on most cost savings down to customers.
It's incredible how people take completely for granted that there is a website with 1) Infinite selection, 2) Low prices (yes yes no longer the lowest but still fairly low), 3) Free shipping, in many cases same day or next day or 2-day.
And on top of that there is a completely hassle-free non-questions-asked return policy.
The cost of all this is this marketplace is incredibly attractive to unscrupulous sellers who will abuse it to list counterfit goods and spam fake reviews. And no matter how hard Amazon works on these the sellers can be just one step ahead.
Government regulation can't help here, it can only kill Amazon and make it ultimately less beneficial for consumers.