This is a unfortunate turn of events. When I worked for Amazon we were a neutral vendor and would sell anything that is legal. There were a number of first amendment right fights as well. But clearly that era has come to a close.
Hmm, guess it is also time for a new neutral vendor to rise up? Anyone interested in funding an startup that will provide warehousing and an online marketplace for physical goods in a neutral manor to ultimately benefit consumers and shareholders? We also promise to try to make the search better than amazons. email is in my profile.
A huge part of Amazon's success is that they don't do all of the warehousing. It's quite easy to become a seller on Amazon and ship stuff from your home. That's how they can have such a massive selection of items for sale. Obviously they also have huge warehouses. Good luck competing with them though :)