Amazon's motives are the same, and even more so, since Lulu customers usually download to their desktop computers, while the Kindle Books are downloaded onto an ereader that only holds 200 books. The idea Amazon is promoting is that customers keep their permanent copies at Amazon, deleting their temporary copies from the Kindle.
I'm on two self-publishing lists and one e-book publishing list, all of them populated by experienced self-publishers. None of them have squawked yet at the terms of service, except where price is concerned, and there's a division of opinion there, since a lot of the folks are accustomed to distribution discounts that are in the 50-75% range. The general reception is lukewarm: "Not ideal, but hey, it's another avenue for reaching the customer."
The biggest discussions on the Kindle seem to be taking place at
MobileRead. Some of them are from the perspective of self-publishers.