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When you consider the absence of printing costs and paper etc, ebooks should be far cheaper than a cheap paperback. I think they should be the equivalent of a book bought in a charity shop or car boot (garage) sale, and priced very low. In fact, I'm coming to the conclusion that ebooks should be free so that publishers make their money on the dead-tree versions of books, which will, in time, become rare collector's items in a digitalised age. Before we reach that stage, there are still many people who prefer paper versions of books and who will keep the money rolling in to the publishers/rights holders coffers. E-versions should be free.
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