I don’t even know how to quote that press release. It’s an example of ineptness.
Basically they are promising something that is impossible: An iOS app that will read both Kindle and ePub books.
That’s impossible because Kindle books use a proprietary DRM. And the only legal way to use that DRM is to get a license from Amazon.
I don’t think Amazon is about to license a competitor to undercut its own Kindle app.
And they can’t reverse-engineer the DRM to make a compatible app because that’s prohibited by the DMCA.
No matter how I try to see how this can work — it can’t be done even by uploading legally-purchased Kindle books to the cloud to be read by a web app! — I keep getting back to the word impossible.