Although the article talks mostly about the Kindle, the issues raised are quite relevant to all ebook readers. This sort of short-sighted thinking on the part of publishers won't work in the long run and will only serve to fracture the market further. Sadly, Sony doesn't seem to have Amazon's foresight in trying to drive the market to a new place by subsidizing ebooks and forging alliances with major publishers to issue Sony versions at reduced prices.
I especially love the remarks about how bad the early MP3 music stores on the web were:
"The other commercial sites, wrote the New York Times, were "complex, expensive and limiting" and "failing because they were created to serve the interests of the record companies, not their customers."