For Media Consumption Only?
Gone is the time when the iPad was the most affordable tablet, and Android manufacturers struggled to even match its price. By removing all the above features, Amazon managed to keep the price of the Fire at $199--a remarkable feat when you consider that the closest competitor (in price, but not features), the Nook Color, costs $50 more. Lenovo's tablet is also about $50 more expensive, but only packs a single core processor, although for your extra bucks you do get dual cameras, GPS, and 16GB of storage.
The lack of cameras, GPS, expandable storage or even Bluetooth clearly sets the Amazon Kindle Fire tablet apart as a media consumption-only tablet.
You will be able to download various productivity apps from the bundled Amazon Appstore, but the main purpose of the tablet, given its low entry price, is to consume content from Amazon, whether it's movies, books, magazines, music, or games. For that purpose, even with missing hardware features, Amazon has a very interesting proposition for casual customers as an alternative to the iPad.