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I understand that Prime Instant Video isn't supported (according to the announcement) because Amazon uses Silverlight for that. However, it is possible to switch to Flash as a sort of fallback (this is a required step for, say, streaming PIV to a Chromecast).

What would be required in order to get Shumway to actually play video from PIV (instead of Amazon simply demanding that the user installs Flash or Silverlight)?

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The problem with PIV, as with a few other video services, is that it uses DRM. AS you're probably aware, there are some quite unfortunate laws around that which prevent anyone from just offering an alternative implementation of a DRM system. Hence, we can't even try. That's not to say that we won't ever be able to offer at least some support for services like this, there might well be ways to work out something clever.

Isn't EME supposed to address that? Or is that not adaptable to non-HTML5 video (even though this is, technically, HTML5+Javascript that happens to be able to play Flash animations)?

EME is a way to add DRM support to html5 video, but it's not compatible with Flash's DRM system, so can't directly be used to implement that.

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