Prime is a sign that Amazon has to some degree given up on the simple business model of just selling stuff with a margin. It's gone from chasing Walmart to chasing Costco, and that's a much smaller market.
That's not to say it doesn't make business sense. The problem is that monetization is now tied to walking the fine line between positive experience and pissing people off...e.g. they have made Prime worse from the customer's perspective. New ways to suck is not a good kind of innovation.
That's not to say it doesn't make business sense. The problem is that monetization is now tied to walking the fine line between positive experience and pissing people off...e.g. they have made Prime worse from the customer's perspective. New ways to suck is not a good kind of innovation.