If Amazon stop bending to those "insane" demands, you're going to see a wave of publishers going bust and then a steep decline in the availability of new high-quality product[1]. AMZN are not the authors' friends, let alone the publishers'. And if they ever establish a monopoly on the supply chain, they'll stop being the customers' friend as well.

[1] Authors don't get to support themselves by touring. And those of us who try to supply good quality product can't do nearly as a good a job if our cash flow is being throttled, or if we're forced to take on the elements of workflow that our publishers currently handle for us.