I hope your interpretation is the right one, but it's still problematic in that Amazon can't offer their subscriptions in-app without price matching instead of

I hope your interpretation is the right one, but it's still problematic in that Amazon can't offer their subscriptions in-app without price matching instead of (cost + 30%). I don't know the exact breakdown, but I'm pretty sure the iPad is not the primary Kindle reading device. Adding a useful feature like in-app subscription purchases now has a huge negative incentive for Amazon.