You're arguing against a strawman, most of the comments here have been positive and the article even says: But is a loss really a loss? The important aspect of this 99-cent promotion is the value of the increased traffic and awareness. It has new products to promote, Cloud Drive and Cloud Player...

Even John Gruber has been positive on the promotion: http://daringfireball.net/linked/2011/05/28/gaga-amazon