Time Magazine has a new feature available online titled "Is Amazon Taking Over the Book Business?".:
No question, Amazon is the most forward-thinking company in the book business. If there's a Steve Jobs of books, it's Amazon's founder, Jeff Bezos. His vision is defining the way books will be bought and sold and written and read in the digital world — which is to say, the world. The question is whether there will be room in it for anyone besides Amazon.
Ultimately, the article says the free market will not allow Amazon to completely dominate. Apart from a brief mention though, it doesn't explore the possible monopolistic advantages of Amazon's vertical integration and whether that may be a significant buttress against the wants and needs of the free market.