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Two things are inevitable:
1. Prices are going to come down due to competition. Competition is global, and includes the zero-cost public domain.
2. The amount of junk is going to increase, as every literate net-connected person can write and publish.
What I think is probable:
1. Authors are going to eliminate the middle-men.
Until ereaders become mainstream (as MP3 players did), ebooks are a niche market. We are at the bleeding edge, and can expect high prices and screwy tactics, just like MP3s had in the beginning. As there are thousands of high-quality public-domain ebooks, I hope the improvements come faster than they did in the music industry.
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