Earlier today, Amazon took the wraps off of its Kindle Reader for the iPad. Details are still sketchy, and Amazon has only released three screen shots. Also, so far as I can tell, it hasn't yet been approved by Apple. However, what Amazon's shown looks good, and it brings full color, full page displays to the Kindle.
I've long believed that Amazon's end game is to get out of the eBook reader hardware business. Hardware is a very difficult and expensive business, and it doesn't play to Amazon's strengths. Amazon needed the Kindle hardware in order to build a large base of eBook customers and thus drive eBook adoption and sales. Now that tablets are becoming available in a range of sizes and prices, the need for Amazon to have its own readers is declining.