Yes, any tablet with flash can be used to watch films from Amazon. Today, I am watching a film I rented from Amazon on my Nook Tablet. I can not download an Amazon film as the Fire can, so I must be connected to WiFi when watching. When my WiFi connection is at full strength, Amazon movies look great.
This Samsung Tab will have a real impact...by November, every tablet maker will need to have an Android 4.0 tablet near the $200 price point, or get out of the tablet business. And, "locked down" tablets such as the Nook and the Fire will need to sell for under $150 or upgrade to Android 4.0.
Unless you are willing to install an old, insecure version of Flash on your Galaxy, no. Also, Amazon expects you to buy their Fire so you can view their streamed video on an Android App. The App only runs on Fire, nothing else. They also have not mentioned whether they will support Amazon Instant Video as an HTML5 enabled system natively through the web browser. At this point, vote with your dollars and use other services. Amazon doesn't seem to think they'll be missing any revenue by this decision.
You are right, I read that today. It seems that Google's tablet will be heavy on the Google Play like Kingle Fire with Amazon. I rather have more choices in what I can do with a tablet without the need of an Ipad. One thing I don't trust of Google, is that from what I hear, they collect too much personal information and sell. 7" is an ideal size for me.