Re: I'm curious
I think your fear is justified. It's typical of incumbents to armor up. I don't think it will necessarily drive VMware out of business, though. They've achieved Cisco-like market share in the enterprise, along with all things that make incumbents sticky (running business-critical production apps, certifications for admins, lots of third-party integrations, etc.)
That said, if Amazon ever decides it wants a bigger piece of the enterprise market, it could start selling its own hypervisor as licensed software. It doesn't have to kill VMware, but it could make a serious dent, especially if it rolled it out as a hybrid-ready option, and focused on features like cloud-based BC/DR.