How scared is Amazon of the Apple iPad?

Amazon has been twitchy lately. They suddenly offered new deals to their suppliers for eBooks. Then they offer risk-free Kindles to some high-value customers. Then they de-list Macmillan's books over a contract dispute. All of that tightly around the Apple iPad and their new iBookstore. Clearly, Amazon is terrified of this threat to their business model.

The newest evidence of Amazon's paranoia? They have bought a multi-touch display company called Touchco. This is likely for future Kindles, which would imply that they are abandoning e-Ink technology central to current Kindles in favor of a more Apple-like technology.