I don't buy (or download free) ebooks with DRM. That drastically changes the marketplace for me; I don't even look at Amazon and Barnes & Noble. (I'm aware that not all of their titles are DRM'd, but since I can't tell before I buy, I don't bother looking.) I buy from Smashwords, Fictionwise, DriveThruRPG, e23, Baen Ebooks, and occasionally publisher bookstores.
I've spent more than $10 on a single title maybe twice, for RPG supplements. For novels, my cap is $6. (I have bought a collection of 5 novels for $15.) I read a lot of free ebooks, and a lot of $3 ebooks. I don't read many $.99 ebooks, because those aren't as common away from Amazon.
I don't so much mind paying more than $6 for ebooks as I want to make my budget stretch, and I've yet to run across the novel that convinced me it would be more meaningful or entertaining to me than my list of to-be-bought books from Baen.
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