I'd just like to point out that Amazon didn't use the Android Market for the Fire but used their own ecosystem (whether you want to argue that they built the Amazon app store for the purpose of putting it on their own devices is another story). So they didn't actually use the existing Android sales/distribution ecosystem.

I don't understand why amazon didn't offer HDMI connection on the fire(and a separately sold cradle). They could have sold more units, have more prime users and get some control on the TV and the gaming market.

But the purpose of the Kindle Fire is to be part of the Amazon ecosystem.