Yep. Lack of Google Apps was a complete deal killer for me, even withstanding the price. I felt the same way when I tested out a Kindle Fire tablet (opted for a Nexus 7). You'd have to pry my Kindle reader out of my cold dead hands though.
Lack of Google Apps was a big problem 2 years ago. These days, lack of Play Services means a huge number of non-Google Android apps won't work. Play Services is Android for many developers.
I bought the Fire HD 8.9", rooted and installed Play store. You can run all the apps on play store. It was a better deal that way.
But nobody has payed Google for store access in this scenario. They may cut you off any time.
I think the relative failure of the Fire tablet should have been a sign to Amazon that they needed a new approach for the phone.
And specifically that the Fire tablet seems to be most successful among kids. The parental controls on Kindle Fire are pretty good, but the locked-down app store (No YouTube!) was only tolerable because the parent is choosing the apps.