It seems that Amazon would agree with that assessment, since they own Audible.com, the web's biggest audio book seller. One would imagine that if they thought the kindle's reading feature would infringe upon/destroy the audio book business, they wouldn't have given it the green light.
Agreed. In fact, Amazon engineered the Kindle to play Audible books as well. And they didn't eliminate this functionality when they added the ability to 'read' the books aloud.