Amazon Wants to Monetize Fandom

I may have mentioned this before, but I used to write fanfiction (stories based on somebody else's work and posted online for other fans' enjoyment) and I still read tons of it. Therefore I'm particularly concerned to find out Amazon had come up with an idea to exploit fanfic writers. I understand that Amazon obtains the appropriate rights from the original right holders and from there can publish works based in those licensed universes.

 What worries me:
 -The potential for fanficcers to be exploited because they don't perfectly understand what they're signing. Amazon claims ALL rights to the works and can do whatever they wish with it. If it goes big (50 Shades, anyone?), the profits will be largely theirs.

 -The potential to split fandom between "approved" ficcers and "unapproved" ficcers. That could get ugly, especially if the M/F writers are approved of but not the M/M and F/F writers.

 -The potential for Amazon's lawyers to go after free fanfiction sites because they're suddenly considered competition.

 -The potential for Amazon to cripple the LGBT-friendly side of fandom. A great deal of fanfiction is M/M, F/F, or otherwise queered up. It is likely that these stories would not fall within the guidelines of what's acceptable for publication (they already said no AU). If Amazon does try to shut down free sites, such material would be forced to take refuge on servers in other countries.

 As an author I'm very much in favor of fanfiction (preferably published under a noncommercial Creative Commons license), but I feel that this endeavour goes against the spirit of fandom and may cause real harm.

 Links:
Official Press Release
Author John Scalzi's thoughts
Author Malinda Lo's thoughts
Author Jim C. Hines' thoughts
Author Chuck Wendig's thoughts