Does this idea have any legs?... I mean beyond kindle... It seems they are trying to move the processing work done by the browser to the cloud. But the processing power of the devises is growing faster then the browser needs for processing power. Connectivity is, usually, bigger problem than the processing speed.

This article pretty much nails the pros and cons:

Main advantage: it's fast. Plus, content can be tailored to Fire before it reaches the device.

Main disadvantage: privacy. Having Amazon's cloud acting as a middleman between a user and the Internet raises obvious questions about privacy. If you worry about Facebook tracking your activity on any web page containing a "like" button, your anxiety levels should skyrocket at the prospect of Amazon tracking your every move on the Web. Amazon says the information it gathers will be kept anonymous, but are you willing to gamble that it will remain anonymous when some government agency, either domestic or foreign, or some lawyer with a discovery order shows up on Amazon's doorstep demanding to look at the data?

The idea has legs because Amazon needs its own Web Browser.

Next up: Facebook gets its own Web Browser, too.

Microsoft was clearly a pioneer.