Amazon has achieved a scale where they have driven down their cost of business per product sold as low as they can. Only other companies operating at a similar scale can compete. By increasing the cost of doing business for smaller competitors that don't have their scale, they are dramatically increasing the cost of anyone else doing what they did to get where they are.

I'm sure Jeff feels good about this more. He can be rightly proud of it. He's managed to build a business successful enough that he can afford to do it. However don't lose sight of the fact this is also a shrewd and actually pretty aggressive business move.