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Well Smashwords is kind of a publisher crossed with an ebookstore... kind of stripped down the publishing aspects to the bare minimum (i.e. distribution).
I suspect that as ebooks become more popular with those of us who read regularly for fun (as opposed to the people who buy or read 3 or 4 books a year), that books that would have originally been released to the mass market first will be simply published as ebooks and only printed if they really build a following in the ebook world (and with Print on Demand Publishing, this should be a fairly easy step).
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Bill
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