Lulu is apparently not going to be affected by Amazon's POD demands because they have signed the contract and given in to Amazon's demands. This means that if I did publish with Lulu which is still the plan) I would be okay.
I like Amazon and have used them for years to buy books and I've even setup affliate stores with them. I don't generally have sites with a lot of traffic so the most I've ever gotten was ten dollars which I converted into a gift certificate. I don't know how I feel about what the are doing with POD publishers because it seems very monopolistic but obviously makes good business sense on their end.
I may end up splitting my book into two because I have to consider what royalties I am going to end up receiving. This is all presupposing that the book sells to anyone.