Apple versus Amazon is like Ali versus Frasier. This is two evenly-matched fighters and the outcome of their battle can only benefit consumers.

This is what I’ve been hoping for: a company with the skill, vision, clarity, and competence to truly compete with Apple. It wasn’t going to be Google. It was never going to be Google. I’m grinning at the thought of how high these two companies can push each other. What a great time to be a geek and to be alive.

Prediction: Amazon’s got great content and so-so hardware. Apple’s got great hardware and so-so content (iTunes is huge, but they’re at the whims of studios who still want to play like it’s 1989). I think Amazon’s going to start focusing on the hardware front. Apple will focus more on the content – maybe with a digital eLibrary for book rentals? How wonderful would that be when I can just rent books with iBooks on my iPad? I’d have a hard time justifying the use for my Kindle then.

I also can’t help but point out this how our capitalist society is supposed to work. The government hates Apple because “they’re big” and they hate Amazon because Amazon keeps successfully skirting sales tax laws. Both just want to go about doing what they do best.

In a sign that Amazon wants to upgrade its Kindle e-reader to compete head-on with the Apple iPad, Amazon has acquired Touchco, a New York-based start-up specializing in touch-screen technology, a person briefed on the deal said Wednesday.

Amazon will merge Touchco’s technology and staff into its Kindle hardware division, Lab126, which is based in Cupertino, Calif., this person said.

If you can’t beat ‘em, join ‘em.