The image of book-burning Nazi Germany is supposed to let the reader infer--I imagine--that Amazon's tactics will somehow result in rooms full of empty bookcases. Really, using an image like that is the worst kind of sensationalist journalism.
The reality is that Amazon has brought the opportunity to publish to thousands of authors that establishment publishing companies have turned their backs on. It has also brought thousands of very low-priced e-books (for free or $0.99) to readers who can't afford the high prices demanded by New York publishers. It has, almost single-handily, created a huge literary marketplace of books.
Personally, I think what's happening now in publishing is the most exciting thing since the invention of the printing press.