"Is it legal for someone to be paid for delivering these films?"
Yes.
"It seems to me that if I "buy" this film today, Amazon can cancel it tomorrow and not have to refund me anything."
Why do you think they could do that? If they did, you would have recourse, such as getting a refund through your credit card company.
"Any IP lawyers here?"
So-called "IP" is irrelevant to public domain materials. Copyright is merely a restriction on who is legally allowed to copy/sell something. If there's no copyright, then anyone can copy/sell it, or give it away for free if they want to. Look at all the classic works of literature that are in public domain. That doesn't mean it's going to be free if you walk into a book store looking for, say, Adventures of Huckleberry Finn by Mark Twain. On the other hand, you can read it or download it online for free because someone has decided to make it available for free, which is perfectly legal to do:
https://www.gutenberg.org/ebooks/76
But I doubt you'll find anyone giving it away for free in book form, because printing and binding books costs quite a bit of money. Even if there's nothing printed on the pages at all (such as a diary/journal), it's still not going to be free.
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