The Fire makes sense, it's a media portal that plugs directly in to Amazon's forte; books, and more recently, apps and streaming video. It's not a tablet though, and Bezos readily, and correctly, admits that. What exactly would they gain by making a phone? Sure they would stand to sell more apps, but I think Amazon is most interesting in selling books and being a player in the streaming media game. The cell phone, with its small screen, isn't well-suited for those. Not to mention that their apps are Android apps, something I wouldn't think Palm would make a great resource for. If they are buying Palm for hardware and cell phone experience, I'd think there would be a cheaper way to get those somewhere else.

Phones don't make sense in Amazon's model at all to me. Of course, I could be wrong, but unless it's driving sales of Amazon products, like the Kindle does, there's no incentive.