Pure text is not good enough for many kinds of books - you need to at least support images (for cookbooks, children books, travel guides etc.), monospaced, bold, italic fonts (for programming books), vector graphics (for illustrations in technical books that will good at every dpi) etc.
There's no strictly ebook format that gives you that so you can either spend engineering resources trying to define and implement a new, non-trivial ebook format from scratch, with non-insignificant possibility of getting something wrong.
Or you can re-use the most wide spread document format in existence. A format that gives you everything you might ever want, has evolved over more than a decade, is tried and tested and works and is implemented on every platform imaginable and has open-source implementation that everyone can re-use.
HTML5 is the lesser of any other evil you can come up with as a new format for ebooks. Amazon made the right decision.
The wording of the text regarding 'older readers' is also a bit confusing. Will material created for KF8 be 'automatically translated'? Will the tools output two different formats? I'm curious to see the details.
I guess I'll need to order a Fire though, in order to keep up... I was a bit ambivalent, as I'm not wild about not having the Google stuff, and about the Android fork of an older version.
The good stuff: table support currently sucks, and the ability to do a bit more with the formatting will help with things like manuals or textbooks, that currently don't always work well on the Kindle.
I am worried, though, that for many people, it will be "enough rope to hang themselves with".
If you want to code poetry, plays, research with footnotes, or anything else, then having access to more options is a wish come true. (Waste a few hours trying to hack any of the above into epub and you'll feel my pain.)
It's not like making this available makes it harder to code novels at all, so why complain?
That said, I think that HTML5 capabilities can improve the reading experience if used properly. iPad-type tablets can get access to interactive experiences with technical books and comics, kindle-type tablets get improved typography and layout. Some publishers may abuse the tech, but there's still a very strong market for Just Plain Reading, so I don't think it will be too bad.
But I absolutely agree that the book is a valuable, time-tested format. We’ve learned a lot about readability. Conflating the goals of books and web pages would be a loss. NB, we still have radio.
At the moment I am still buying books for my son, and clumsy attempts at mimicking interactivity in paper based children's books seem to be all the rage. So even now books don't confine themselves to being just books.
Do we really need HTML5 support? Isn't the purpose of Kindle to be a book?
Ok, I can grok colors. I might even go for interactive charts. But where does this stop? As a consumer, I would like my static content delivered in a separate device in a format approaching paper. My dynamic content I consume from a different device. One of the reasons is that various forms of content are more engaging (read addictive) than others, so by separating them I can budget my time. I don't think anything of spending 5 hours with a Kindle on the weekend because it's a book. If I spent that same time playing Angry Birds on my Android I'd know something is out of whack.
Does everything have to be an all-purpose display device? I kind of liked the Kindle because it was doing just the one thing. I'm not sure I understand why the format has to be updated so much.
EDIT: I'm also curious as to how this affects all the other readers out there. In E-Reader world, we live way back in the dark ages where every device is funky. Does this add more to the funkiness of trying to cross-deploy? Was there something so wrong with Keep it Simple, Stupid? It's text, for goodness sake. It's a book. I know I sound like grumpy-old-guy, but hell guys, ya think we could manage one format for displaying the world's oldest persistent communications format -- simple text -- without too many revisions?