Earlier quoted context omitted.
I agree. The intent is noble, but this headline makes Amazon look like the bad guy for disapproving unauthorized use of one of their domains, which is quite reasonable.
Amazon and Google are certainly within their rights to refuse this. Allowing domain fronting is likely to put quite a lot of their money at risk, so this outcome is unsurprising, but it's still the less ethical one. This might be the only possible outcome given a corporation's legal responsibilities to its shareholders etc, I don't know all that well enough, but I think it's still justified to lower my opinion of Goo…
Personally this weakens my view a little, but is not enough to change it substantially.