In regards to the "individual artists" thing, she means that different artists on different labels should have different priced albums based on the quality of their album. For example, Taylor's RED is $14.99, and it will never see a discount, because she an her label feel that it's worth the money. They do not think that all albums that have 10 tracks should be $9.99, 11 tracks $10.99, and so on. She's saying that the label and the artist need to evaluate the album and decide its worth.
When amazon discounts an album, it's amazon that is losing money not the label. They're kind of promoting the site whenever they discount a popular album by attracting traffic. That's what I've read about amazon and their discounts. I could be wrong tho