wow just wow. This only demonstrates to me how clueless this guy (industry?) is about technology.
It is "comparable" cost to set up a physical warehouse as it is to set up a digital infrastructure? Did he mean "equivalent"? Because if he did there is no way you can tell me building (or renting) a 10,000SqFt warehouse (for example) and staffing and maintenance costs the same as renting a Virtual Server at GoDaddy.
As far as setting up the "infrastructure" this can be bought of the shelf from Adoboe and I assume from eReader too. Or you could plug into the Kindle Publishing System and I assume Sony has a similar one. The commerce systems are allready well established. Digital delivery of software is pretty much the norm these days. Once again, this is off the shelf software. Most likley there are open source systems. If they go DRM free this can be done more quickly and less expensivly also.
Also, the first company that creates a system to source all documents in ePub and from them create pbooks and ebooks will be able to sell/lease that system to other publishers. Heck the software I work on the same doc source is used to create the help file and the printed manuals. It is called single sourceing and it is done all the time in the software industry.
Imagine if Ford said that it will take money to modernize our line from using people to using robots. So, for the next 5 years cars built on the automated line will be 30% more in order to pay for this. Well, no one would buy those cars. Then they would say, see no one wnats cars built by robots.