Bezos is my hero by selling new release e books at $9.99 even though the publishers don't agree. At least not Penguin reading the article. If he can force them to see the light by even selling current releases at loss that is a good thing. It's fine for the publishers to hide in their back rooms and justify it to each other why they can't sell them cheaper but if I was Bezos I wouldn't want to stand in front of the media and try to explain why the electronic editions cost the same as a hard cover physical book. The Kindle is looking better all the time.
I had to laugh when I saw the quote from the Penguin CEO that the digitization process is a real choke point and how new releases go through it all the time. Of course if you first print the book and then put it through a digitization process it will become a choke point.