From what I understand, Amazon won't feature a trial or "lite" version of your app for the Free App of the Day. It doesn't have the same value-proposition for users.
I would argue that their actions, at the very least, are getting people thinking about the privacy and security issues we face. Their methods are blunt and can be damaging, but you can't deny that people have been talking about these issues much more, and I think that's a good thing.
Raising awareness for privacy and security issues is a good thing. Doing so by creating more privacy and security issues is decidedly counterproductive.
