Amazon and typos

An author on Kindleboards reports that Amazon rejected her book due to typos. This might be a good thing, except Amazon apparently will not clarify the matter-- they just say there are issues, and leave it to the author to correct. This means that if Amazon is in error, an author might never get the problem fixed to their satisfaction. Also, IMHO it's a bad thing for Amazon to start getting involved in content-- I certainly don't want them rejecting books based on, say, plot content. Amazon is a distributor, not a publisher, and I really don't want to see them acting like a publisher. But I realize that readers who have come across badly formatted, typo-ridden indie books may not agree *shrugs*.