1. I still think they are stupid for turning it down.

2. Especially after it turns out that they weren't really taking care of security and stuff

3. Especially when teenagers are fickle and are already onto the next thing.

4. I've been reading The Everything Store (great read. strongly recommend, especially if you enjoyed Steve Jobs biography) and my favorite parts so far are how Bezos crushes his competition. It's awful. But amazing.

Here's a link to one excerpt about how they got Diapers.com. They did a similar thing to Zappos.

While they were in that early morning meeting with Bezos, Amazon sent out a press release introducing a service called Amazon Mom. It was a sweet deal for new parents: They could get up to a year’s worth of free two-day Prime shipping (a program that usually cost $79 a year). Customers also could get an additional 30 percent off the already-discounted diapers if they signed up for regular monthly deliveries as part of a service called Subscribe and Save. Back in New Jersey, Quidsi employees desperately tried to call their founders to discuss a public response to Amazon Mom. The pair couldn’t be reached: They were still in the meeting at Amazon’s headquarters.

Quidsi could now taste its own blood. At one point, Quidsi executives took what they knew about shipping rates, factored in Procter & Gamble’s (PG) wholesale prices, and calculated that Amazon was on track to lose $100 million over three months in the diaper category alone.

That's apparently how the game is played in this high stakes, fast paced tech world.