Trying to shut down alexaholic is stupid

I read Mike Arrington's post about Amazon's recent attempt to shut down alexaholic -- in my opinion, this is stupid.  Alexaholics success is a result of Alexa's failure to service their own customers expediently and sufficiently. Alexa could easily put Alexaholic out of business if they improved their service (period). The improvements are relatively simple too. Just allow a user to compare different web sites traffic grids against each other. For goodness sakes, this is clearly amongst the primary use cases at Alexa.
If Alexa didn't want to do this, my guess is Alexa could have bought  Alexaholic too. While on first blush this may have seemed stupid, I don't think it's nearly as stupid as trying to use legal methods to shut  Alexaholic down. That's really stupid....and unlike Amazon in my opinion. In my opinion, they've been a company that has typically embraced web services and innovation more generally.   Why are they doing this? It seems that Amazon prefers legislation to innovation.  I don't get it.