You'll have to get developers on board, I think. http://shiftyjelly.wordpress.com/2011/08/02/amazon-app-store...
The whole point of being featured as the Free App of The Day is for exposure. Not monetary handouts.
Conversely, as a user, if there aren't quality free apps in the amazon store, why would I use it in the first place? I can get the same content from the built-in Market.
So, from both a developer and user standpoint I see no reason why Amazon should "take over Android app distribution".
* Hypothetical, I don't develop for mobile at this time.