There are ways for SMEs to fluorish despite Amazon. And there is no benefit in the long run for Amazon to hurt businesses, rather than cooperate, because a no-brainer niche/need will appear for a competitor to grab. If it continues to adopt strategies and policies that squash smaller businesses, sooner or later another foreign or new platform that offer to do what Amazon is unwilling/unable to do, and everyone will jump ship.
The way businesses works nowadays is to constantly improve and find the next problem in your sector to solve. And being destructive to its "environment" isn't the way to do it. But even if it continues doing so, I believe there will be enterprises that can rise up and offer a competition, so I don't see an "end of the world" future looming.
You do realize that Amazon doesn't pay as much taxes as those small businesses? Isn't that an impediment for those entrepreneurs to improve?