Ive been selling on amazon and have the complete opposite views. I break rules (unintentionally) and they simply warn me. Ive contacted their support and am always very impressed at how quick and efficient they are. Ive found issues with their product pages where another 3rd party has incorrectly listed, they research and make the change within 24 hours.
I dont depend on them, I use them as a marketing avenue. I try to drive business to my site and facebook page and have done very well with this. Using amazon as a marketing tool is the way to go, dont count on them as a source of orders simply use the orders to market yourself.