This is a surprising decision. I think most people were expecting Amazon to move away from Mobi but they probably expected Amazon to adopt EPUB especially as EPUB 3.0 is near release.
The Kindle devices are cheap & low margin; Amazon's profit is from the content. They've got a customer mindshare majority (What's an ereader? Oh, you mean a Kindle), and a large author base. Why would they open up their devices to competing publishers?
[1] http://www.robotmedia.net/2011/08/using-javascript-in-ibooks...
[2] http://www.digitalbookworld.com/2011/five-tablet-trends-sign...