Sorry, Ernest, but your 'pittance' is largely because you're only earning 15% royalties (15% to you and 15% to lulu), while if you published directly to Amazon, you'd earn 70%.
Oh they will offer people who ant to give them permanent irrevocable control of a story more than anyone else, and the payment from Amazon before Lulu take a cut is about 15%. Also, Amazon will tell me what they'll sell at, I'm not allowed to choose a price of my own unless I had over full control to them.
As to the Amazon TOS, go back and read it again section 5.5 Grant of Rights:
You grant to each Amazon party, throughout the term of this Agreement, a nonexclusive, irrevocable, right and license to distribute Digital Books, directly and through third-party distributors, in all digital formats by all digital distribution means available. This right includes, without limitation, the right to: (a) reproduce, index and store Digital Books on one or more computer facilities, and reformat, convert and encode Digital Books; (b) display, market, transmit, distribute, sell and otherwise digitally make available all or any portion of Digital Books through Amazon Properties (as defined below), for customers and prospective customers to download, access, copy and paste, print, annotate and/or view online and offline, including on portable devices; (c) permit customers to "store" Digital Books that they have purchased from us on servers ("Virtual Storage") and to access and re-download such Digital Books from Virtual Storage from time to time both during and after the term of this Agreement; (d) display and distribute (i) your trademarks and logos in the form you provide them to us or within Digital Books (with such modifications as are necessary to optimize their viewing), and (ii) portions of Digital Books, in each case solely for the purposes of marketing, soliciting and selling Digital Books and related Amazon offerings; (e) use, reproduce, adapt, modify, and distribute, as we determine appropriate, in our sole discretion, any metadata that you provide in connection with Digital Books; and (f) transmit, reproduce and otherwise use (or cause the reformatting, transmission, reproduction, and/or other use of) Digital Books as mere technological incidents to and for the limited purpose of technically enabling the foregoing (e.g., caching to enable display). In addition, you agree that we may permit our affiliates and independent contractors, and our affiliates' independent contractors, to exercise the rights that you grant to us in this Agreement. "Amazon Properties" means any web site, application or online point of presence, on any platform, that is owned or operated by or under license by Amazon or co-branded with Amazon, and any web site, application, device or online point of presence through which any Amazon Properties or products available for sale on them are syndicated, offered, merchandised, advertised or described. You grant us the rights set forth in this Section 5.5 on a worldwide basis; however, if we make available to you a procedure for indicating that you do not have worldwide distribution rights to a Digital Book, then the territory for the sale of that Digital Book will be those territories for which you indicate, through the procedure we provide to you, that you have distribution rights.
They claim the right to retain and keep selling even after you cancel the account. They have books of mine I never approved the to sell they still advertise as available through them, despite me asking them to remove them. In response to the many emails I sent them I've had two comments from Amazon, one is a flat refusal to amend their website, and the other is a flat refusal to discuss anything with me until after I open and account with them.