No, it feels like Amazon is over-reacting, and unduly distrustful of the bright young people who would wager their careers and reputations to come work for them.
And if they do, it'll probably only be for the minimum term anyway given what an awful workplace Amazon is. I live in Seattle and hear Amazon stories all the time.
Yes and no. I think Amazon is trying to make their intern recruitment process more efficient. By eliminating cheating possibilities, people who do not meet certain criteria will not move forward and thus there will be less phone screens to schedule.