For some reason, it doesnt surprise me that Amazon is not very committed to hiring the kind of people that want to live in New York. While they're probably not enjoying their PR, I can't believe this is their biggest lost.
"The kind of people that want to live in New York" includes Google, Microsoft, Facebook, and Amazon employees (Amazon has about 5000 employees in NYC already). There is also the financial sector with all those quants and risk managers and whatnot. I am pretty sure Amazon wants to hire people like that but convincing them to move to Nashville won't be easy.