If New York feels that it's not getting properly due payments from individuals who do not pay proper taxes on items they import from out-of-state, then the state of New York needs to be more diligent in auditing those taxpayers, looking at their financial records, etc.

Going after Amazon by claiming independent "affiliate partners" located in the state is the same as a physical location (even though the affiliate partner handles no merchandise or other physical property, and isn't even recognized as a representative of Amazon), is completely wrong. If Amazon doesn't sue over this, then I can see them making the proclaimation that they cannot have affiliate relationships with individuals in New York state, and those affiliates will quickly setup a PMB in New Jersey to get around that.

This will be a clear case of "penny-wise and pound-foolish".