I'm happy paying Kindle prices ($11.99 - $15 usually). I'm happy to pay a bit more if I'm keen enough (I'd probably pay up to $20 or $25 if I knew I was getting a great book).
I'd be willing to pay more to get a book without DRM. I'd be willing to pay more if I felt the price was reasonable compared to the paper book (i.e. if the ebook is priced lower).
I think $10-$15 is about right for the average ebook. That puts them in the range of impulse buy, and I'm not going to be too concerned if I buy a book I don't like at that price.
RE: DRM
All DRM can be removed. Google the format the books are in + "remove DRM". I've recently read books on my Kindle that had non-Kindle DRM on them. It's not difficult.
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