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I think we all hoped books would cost less: I know I did. When I saw Amazon's $9.99 price I thought it was too much; but that's because I was comparing ebooks to paperbacks and I wouldn't pay $9.99 for a $7.99 paperback.
I think $4-6 is a reasonable range for the ebook of a paperback. I'm not quite so sure about the ebooks of hardcovers. I've paid $15 for a Baen eArc without complaint, so that's my upper end, but I don't know what would be reasonable as a rule.
As for $1-2 for the ebook of a commercially published novel - that's just as unreasonable as $20 for the ebook of a $7.99 paperback.
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