For myself, I can easily see e-books going the same way as music (and television and radio, before it), being supported by advertisers and put out for free to consumers. Another, similar tack would be financing via grants. With a society that is already used to pulling its entertainment "out of the air," it seems a logical way of presenting the material that so many seem to be loathe to directly pay for.
Look at TV and radio... both systems work, right now. Music is taking advantage of its already-existing advertising connections to do the same. The big downside is that it does limit the amount of material available to consume, because the work is left up to a third party to okay. Art ends up at the mercy of corporate execs, marketers and other deep-pocketed supporters who may or may not "get you."
It also means going out and either soliciting for your grant or advertiser, or aligning yourself with an organization that will do that for you. You may end up back with the existing publishing model, wherein someone else has the final say over whether or not you get published.
But with some tweaking, I think the advertising/grant system could be applied to e-books, as with music. I myself look forward to the day when I can do nothing but write, because I am being backed by advertisers or grants.
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