I'm not shocked, because they were going at this in a totally half-assed way. I mean, if you can't be bothered to set up your Web site so that an author can actually upload a book, how committed can you be?
And honestly, I think this is probably good for indie bookstores. The whole idea of making it so indie bookstores can compete more directly with Amazon is, in my mind, completely wrong-headed. If you are a bookstore, you don't want to compete directly with Amazon. Barnes & Noble is competing directly with Amazon, and it's not exactly working out for them. You want your own niche--let Amazon have theirs. Maybe you can sell e-book cards, if they fit in your niche.