I still find that highly amusing, but it's also a huge failure on Amazon's part. There's no way that was the album anyone was looking for.
If you go to itunes and search for any popular song (pre-released songs are the best for it) there are always a lot of shadily labelled covers that are there to trick buyers into purchasing them. I've been caught out by it once before (not paying much attention, see the title matches and hit "buy").
It's not like these songs aren't making sales, quite a few have a large number of reviews (some asking wtf?) and because the character limits in itunes allow for you to cleverly disguise the songs they are a great way to make quick money. For example for the new Justin Bieber single "Boyfriend" there is a group called "Justin Bieber Tribute Team", their name shows as "Justin Bieber..." because of the cut off and they have a song out called "Boyfriend", which is just an instrumental version of the real song, it has ~40 reviews of people saying they love Justin and this is an amazing new song, or saying "wtf is this".
I think Amazon needs to allow these things on their catalog but at the same time they need to be more clear about the fact that these are either not originals or (in the case of the books) that they're really rip-offs of popular media. It's fairly obvious that these are little more than scams, but the no-returns-allowed electronic format itself and the fact that the amounts involved are small probably plays a part in preventing people from complaining too much once they realize that they've fallen for it.
I acknowledge that there may be some confusion around knock-off products, but the Amazon customer service has always been top rate in my experience.
Amazon might make some double sales (the fake, then the original once a mistake has been realised), but in the long run I think this damages their reputation somewhat.