Weirdly, I think this model was beneficial even in the presence of bias: when everyone read the same news, it helped with social cohesion and national identity, even if the stories themselves presented a particular viewpoint.
But now, everyone can get their own news with their own custom-tailored bias, so there's no special reason to sign up for the biases of Washington Post or The New York Times unless you want to signal something to your ingroup. I don't think this is as much Bezos' fault as it's just a consequence of the internet evolving into what it is right now: one giant, gelatinous cube of engagement bait.