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I queried Smashwords on their distribution to Amazon and this is the response I received.

"Thanks for writing in.  We're not currently integrated with Amazon to mass-distribute books to them.  They have pushed back the estimation date of when distribution can begin several times, and we haven't received a new date from them.  You're welcome to publish with them directly in the meantime, of course. Simply opt out of distribution to them in your account (Dashboard > Channel Manager).

However, if any of your books have made $2,000 or more at Smashwords (so $2,000+ for one book, not all book sales combined), then you are eligible for our Amazon test. Since it is currently still a manual process, we must limit which books we can accept until Amazon opens full distribution."

So why is Amazon an option for distribution that I opted out of if they can't distribute there? I haven't looked for a while, maybe the dashboard is different.

No, the dashboard has not changed. The amazon channel is still there. But it has a rider, that refers the author to another page.

Amazon: Distribution to Amazon is not automatic, even if you're opted in. Smashwords distributes ebooks to Amazon only by special request, and only for authors with proven track records at Smashwords. See http://smashwords.com/distribution for Amazon status and details on how to request consolidated distribution through Smashwords.

Oh right, I had no idea. I was on Amazon before I went to Smashwords for iBooks and I don't remember the Smashwords ebook mentioning a special request for Amazon. Interesting.

It's one those pesky sidebar comments. Easy to overlook. I didn't pay any attention when I first published with them because I was already with Kindle. I just opted out.

Me too.