The cartel can give 0-confirmation transactions to its customers, because these are going to be repeat customers because the cartel covers so much commerce.
Everyone can give 0-confirm transactions to their customers. That's a question of business risk, not capacity. It happens now. Please search for the fast-transaction problem and/or the vending machine problem.
Don't play dumb just to obfuscate the point.
The point is the cartel
doesn't have delay transactions for its customers when it withholds them from the other miners.
YES IT DOES! The nature of the protocol requires that the cartel delay transaction processing for it's customers
because it withholds them from other miners. There is no way to avoid it! That's what you can't wrap your head around!
INCORRECT!You still didn't get the point.
The customer will never care that the transaction is delayed into the blockchain (delayed until the cartel's mining servers wins a block in the proof-of-work), because Amazon will give their customers 0-confirmation access to what they purchased.
So that delay is irrelevant.
That only works if the customer does not have control of their wallet, otherwise they could double-spend the money away from Amazon.
So Amazon must control the wallet.
In which case it could instead just manage everything off-chain instead, as current exchanges do.
So there are no transactions to withhold.
This line of thinking was already refuted. See my replies to JoelKatz.