Why everyone needs to give careful thought to using Amazon’s Kindle Fire

Fire and Silk: Did Amazon’s Jeff Bezos bury the lead?
[Via Brainstorm Tech: Technology blogs, news and analysis from Fortune Magazine » Apple 2.0]

The hardware Amazon (AMZN) introduced Wednesday dominated the early headlines. Most of the coverage focused on whether Amazon’s Fire tablet will cut into sales of Apple’s (AAPL) iPad or Barnes & Noble’s (BKS) Nook or both.

But the second-day stories have started to zero in on the implications of a less-heralded — and more unexpected — announcement: The special-purpose browser Amazon’s software engineers have designed to speed up Web searches on their new mobile device.

It’s called Silk, and CEO Jeff Bezos pitched it as a solution to the problem of pulling up content from today’s increasingly complex Web pages, using as an example a typical CNN.com home page with its 53 static images, 39 dynamic images, 3 Flash files, 30 JavaScript files from 7 different domains, 29 HTML files and 7 CSS files.

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Every single web page, its content and its location will go through Amazon servers. They will be able to not only aggregate all that information specifically to you but also put a credit card to it.

They may have greater knowledge of you than Google or Facebook and they will have a credit card connected to that information.

How much could Amazon make off of that information? How tempting it might be to insert its own directed ads rather than what is actually at the website?

This opens up all sort so of Big Brother issues,. Seems to me that this is how Amazon expects to make up the $50 they are losing in each Fire sale.