While I would love to read any kind of blog on my Kindle I’m not that sure that this is going to happen.
While the application wouldn’t be that hard to create, it will pretty much render Kindle Blog publishing dead, since why would anyone want to pay for each individual blog when they can just pay for an app (even if it will be a recurring monthly subscription because of the amount of Internet traffic it will generate) and get all of the blogs including ones that are not available in the Kindle Store because their authors don’t want/care/can’t or just plain wouldn’t put them on there.
Although I doubt that blog subscriptions generate a noticeable porting of revenue compared to book sales and newspaper and magazine subscriptions the issue can cause bad publicity fallout for Amazon either way.
If Amazon would chose to block all such applications from it’s app store that will surely anger the user-base and cause bad publicity. Worse yet it will provide competitors with an easy opportunity to score a feature that Kindle wouldn’t match.
On the other hand should Amazon chose to release such an application, it might anger bloggers who submitted their content to Kindle Store and perhaps earned sizable income from doing so. I have no doubt that some blogs can boast more Kindle subscriptions than brick-and-mortar paper periodicals that are also available on Kindle. Should Kindle RSS reader application become a reality everyone except the most lazy individuals will likely cancel their subscription and switch to the app. This will result in revenue loss by bloggers and might cause some retaliatory bad PR. Although the number of begrudged people would be much less than in the first scenario these few people because of having popular blogs would have louder voices.
Despite the fact that personally I have some blogs published in Kindle Store I would prefer Amazon to go the open way. However I don’t know if it would be the case. Technically the app can be considered a “generic reader” that is explicitly prohibited by the Kindle SDK guidelines.
While most of the blogs can be read via Kindle’s built in browser the experience is so inferior to using the Kindle Store subscription (mostly because browser takes forever to start and navigate to the proper page) that I doubt that many people actually use it.