With the introduction of Amazon’s 7-inch Kindle Fire, the already flooded tablet market is looking like a dam on the verge of collapse. Although, the Kindle Fire is set to break away, using something out of Apple’s own playbook. I’m speaking of services, which Toshiba, Samsung, RIM, Motorola and other Android OEM tablet makers can’t match. On paper, Amazon has the clout and services to potentially take the hearts and minds of the mainstream consumer.

 We have seen what tablet pricing below the norm can cause. The HP Touchpad created a firestorm when it went below $99; the Kindle Fire could ignite a similar storm if Amazon plays it cards correctly at $199.99. A sexy multimedia device with Amazon’s cloud services looks to be a steal at $200. There are important questions about the Kindle Fire that remain though.

Will the Kindle Fire’s modified Android core operate similar to the Barnes & Noble Nook Color? The Nook Color only allows limited use of Android market. Can you use your PC (or Mac) to load local content not purchased from Amazon? If this is a totally Amazon branded tablet, they may not allow side loading in order to force you to purchase content from their marketplace. These questions and the many others left unanswered could quickly stall any momentum the Kindle Fire will gain.

I know Amazon is going to sell loads of the Kindle Fire but will it reach the critical mass? I am not so sure of that until Amazon gives us more information. Until then, the Kindle Fire looks like the king of the 7-inch tablet hill (for now), much smaller than the mountain on which the Apple iPad resides.