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I have a problem with anyone who currently suggests that the best strategy for ebooks is to cut the price drastically and make it up on volume. Making it up on volume only works when you have volume.
The last figures I saw put ebooks at about 5% of the US market, which implies that ebooks are read by about 1% of the population if we accept the earlier figure of 1/5 (20%) of the US population as readers. The numbers just aren't there.
I do prefer DRM-free books, but will buy some with DRM if it's reasonably convenient for me to do so and the price fits my budget. I think $5-7 is reasonable for the ebook of a paperback, and about $10-12 for the ebook of a hardcover. That's about my limit for fiction.
Also, while I do think piracy has a non-zero effect (and that it's not the same for all authors - probably benefiting some and harming others) I don't think the real issue lies with current commercially available bestsellers (or any other kind of book you care to mention) being available to read for free. For the most part, thanks to libraries, having most books available to read for free has been the norm in the civilized world for over a century.
Book sales are about immediacy and owning the book as much as reading it.
Something needs to be done, and I think Baen is making a good start, but we haven't worked out all the details yet, and I think it will be a while before everything settles down.
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