Over at Webmasterworld someone was noting Amazon's new free commercial website service and wondering if they were watering down their brand with all the new online services Amazon is offering.
To the contrary I think the Amazon strategy is brilliant and the idea is to water down the OTHER brands by commoditizing things like commercial sites and search. The relationships they are establishing will pay modest but very long lasting dividends.
The global search niche, by comparison, is hugely profitable but is always threatened by "the next best thing" since users will tend to jump to the best search having little stake in the brand itself.
Amazon has nothing to lose in the areas of free website, storage, web services, etc. I think they are very clever to provide complex, data intensive services.
They are also lucky to have one of the best tech evangelists in the form of Jeff Barr who is spreading the word about some of the new services in his excellent presentations such as the one he gave at MIX06.