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First, competition is a good thing.
However, dissemination of bad information is not.
Back in April (5 months ago), Apple went DRM-free for part of their online catalog. If this didn't include your favorite songs, go place blame properly: on the record labels.
For any song that isn't yet DRM-free on iTunes, there's multiple legal work-arounds for eliminating the DRM. The best known method is to follow iTune's procedures to burn the song onto a CD-R and then re-import it. More to follow.
As such, Amazon's service isn't particularly profound in terms of product differentiation, because there isn't really any. Sure, its sometimes a bit cheaper, but convenience is worth 50 cents to many folks.
Give Amazon a year, then revisit.
-hh