Cloud Player vs S3
"...Amazon doesn't seem quite clear on what it's doing with the product..."
They're not the only ones. I can't fathom why Amazon have completely separated Cloud Drive from their S3 offering. I've been a satisfied S3 user for years and, when Cloud Drive was announced, I presumed it was going to be a Dropbox-esque front end for S3, with a free 5GB to lure in the new punters —then pay for extra storage, as and when needed, as per the S3 model.
Instead it seems to be a completely separate entity, providing storage at Dropbox's relatively high costs, but with none of the one-click OS-integration that Dropbox offers to compenstate. Ironic, given that Dropbox is built on top of S3 in the first place. How can a 3rd party do it better and cheaper than the folks who own the infrastructure?
The Cloud Player aspect does look like it might be useful but, unfortunately it's still not available outside the US.