1. Publicity - This move would probably draw the attention of the Department of Justice. That's a good thing. It would put a big spotlight on eBooks, writers, and all things literary. Great publicity, properly handled.
2. Meatgrinder - The Smashwords input module is top-notch. Don't upload to Amazon without going through it, first.
3. Distribution Channels - Hate Amazon? Buy an Amazon book from Banes & Noble, Sony or Apple. This would probably benefit all involved.
Never gonna happen. But it should...