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I'm sympathetic as the next person when it comes to the price of ebooks, but lots of people seem to forget that the fixed costs have to be spread across all formats. Even more so today where ebooks have risen in prominence and have significantly cannibalized the hardcover market. A lot of hard core, buy-it-when-hits-the-shelves readers naturally embraced the kindle as a cost saving tool. With fewer hardcovers being sold, the fixed costs, including advances, marketing, publicity, and overhead, have to be met equally through ebook sales.
I do think prices can come down, but whenever someone says the marginal reproduction costs are zero so the books should be super cheap, my eyes cross and my tounge involuntarily sticks out.
Of course I've been saying that for seven years now....
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