There is a lot of money in ebook piracy but it is wrapped up in other digital piracy.
Just check out the MegaUploads stories to see how digital piracy is monetized; Google banners and ads are their primary revenue source.
Other sites are usually by subscription and often invitation-only and not limited to torrent or usenet content. Especially now that commercial ebooks are available. There are also places you can buy DVDs worth of DeDRM'ed commercial ebooks just as you can buy DVDs worth of ripped CDs and commercial MP3s and inkjet-printed replicas of commercial software.
Pbook piracy, like software piracy, is rampant in entire regions of the planet, not just China. It is less obvious because it is delivered in the form of counterfeits sold at bazars, flea markets, and small shops, many of which don't even realize/care they are selling unauthorized versions of books any more than they realize/care that they might be selling counterfeit shoes, purses, or even cosmetics.
The market for aspirational replicas of luxury goods (and make no mistake: books *are* a luxury) is enormous and it doesn't limit itself to ripping off just the big guys (Apple, Microsoft, Sony, Rowling...) and it reaches everywhere, even the US and Europe.
http://thenextweb.com/microsoft/2012...t-windows-cds/
http://www.usatoday.com/money/indust...rfeit_CV_N.htm
http://fashionmakesitpossible.wordpr...fs-and-britto/
http://en.wikipedia.org/wiki/Counterfeit_consumer_goods
Rest assured that there is *big* money being made off piracy in all its forms.
But the extent of *losses* to the creators is open to debate; some of the buyers of the pirated content probably would not be able to buy the legit version, but at least some would. And, in fact, some actually *think* they are buying legit goods, deeply discounted.
It isn't just the creators getting ripped-off.