Piracy is just the excuse. What they're saying is that Amazon will allow a collection of corporations (including Amazon) to decide what you're allowed to do with the hardware they pretended to let you buy.
Indeed. I wonder if in these executive conversations anyone ever asks the question, "Music has been purchaseable now without DRM for quite a while. Why has music piracy essentially died but movies/TV shows/etc is still as hot as ever?"
The DRM thing is interesting, for a while if I was watching a show on PC it would detect a screenshot event and turn the show window black. This stopped working. I've seen it used on Netflix and Prime. Not sure if it works still now.