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For me, the essential comparison is with iTunes. I used to download mp3s from sites that were most likely illegal, but that was because there was no place to purchase single songs in mp3 format and I didn't want to fork over $20 for the whole CD. (Did that one too many times and got stuck with a crappy CD for the love of one song.)
Long story short, it took a lot of time to get those downloads. Even now, I would gladly pay a reasonable price for a properly edited and formatted Kindle book rather than download the free version and spend ages editing it and formatting it. (And, my grateful thanks go out to people who will spend that sort of time making the classic available to the rest of us ... you folks are saints.)
That gets us down to what is "reasonable." I don't think it is the hardcover price, no matter how convenient it may be, it still costs less than the HC to produce and the difference should be passed on to the consumer ... that is, if you want to prevent piracy.
The iTunes model would work perfectly for ebooks. Price the digital version at 1/2 to 2/3 of the price of the physical version (and in this case, I would suggest they use the cheapest physical version on the market at the time), and, while they're at it, why not set the ebooks up so that they can be loaned out?? If the lending libraries can have versions that expire after a period of time, why not have versions that will last forever on your ebook, but expire after 2 weeks if transferred to a friend's. Hell, while your at it, tag them so that the original owner can't read the file while it's out on loan, but can after the two week loan period.
It's not rocket science, I'm certain it could be done. There are times I think that people who sell goods just don't understand consumers. Basically, if we feel like we are being ripped off or given no choices in the market, then most of us will have no compunction about turning the rip off around on the seller. That said, give us a reasonable price for your goods, and we'll buy it before we even so much as think about stealing it. Especially if stealing it takes more time and effort than buying it. (Let's see .... I usually charge my clients $250 an hour for my services .... if it takes me four hours to download, edit and format a "free" book, then that book has in essence "cost" me $1,000. Would I pay $8.00 to save myself $1,000 in lost time?? You betcha.
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